Thrive in an increasingly competitive global marketplace by connecting people, departments, companies, customers and suppliers through a strategic alliance.
A successful strategic alliance will generate a profit that none of the alliance partners would be able to achieve on its own. Could a strategic alliance with one or more companies strengthen your business?
Benefits of strategic partnering
First, alliance partners gain access to specific strengths that they don’t possess themselves – perhaps in sales, technology, finance or distribution. So strategic partnering can bring benefits such as:
- expanded access to markets
- advanced technology
- quicker product development
- broader geographic range.
Second, the alliance partners together can control the quality and performance of the entire production process, from raw materials to system design, from manufacturing to global distribution.
Third, economies of scale are likely to result in:
- increased versatility
- lower costs
- more advantageous purchasing and financial arrangements
- a stronger negotiating position with suppliers, customers and/or regulatory agencies
- greater access to critical resources
- opportunities for large-scale marketing efforts.
Why consult TCii about strategic partnering?
While a strategic alliance can bring you all the above benefits and more, it can also be a minefield for the unprepared or uninitiated. The process of alliance screening, assessment, negotiation, implementation and maintenance is a difficult one that requires deep, organisation-wide commitment from all involved. And if your prospective partner’s goals or cultures are radically different from your own, the alliance will most likely fail.
Here at TCii we have extensive experience of helping clients to set up successful strategic alliances that preserve and develop the distinctive competitive advantage and core competencies of each partner business. We will help you to:
- define the core competencies you possess and identify those you need in order to achieve your goal of being the best in your industry
- articulate the competitive values that will make you an attractive strategic partner
- show your prospective partners how your core competencies could solve an existing business problem.
To help you find the perfect match for your strategic alliance, we will analyse your current and projected strategic position in terms of:
- the industry factors that have the greatest impact on your business today
- the competitive conditions that are influencing your suppliers and your customers
- threats to your products or services from industry newcomers and/or potential substitutes.
Finding the perfect partner or partners is only the beginning. For a strategic alliance to work, you need to apply best practices for implementation and integration, including:
- designing a structure that meets the needs of the alliance rather than those of the individual partners
- appointing high-performing managers to implement the alliance – and rewarding them appropriately
- connecting strategic objectives to budgets and resources, with a built-in review process
- defining exit obligations, procedures and penalties.
TCii has an excellent track record in setting up and implementing strategic alliances for clients. We can help you with all of the issues described above and many more, including:
- negotiating the details of the alliance
- designing an effective system of governance and measurements that are consistent with the alliance’s founding vision
- creating an alliance culture within the partner organisations
- avoiding the pitfalls characteristic of alliances between companies of dissimilar sizes.
Next steps to a thriving strategic alliance
If you are interested in knowing how a strategic alliance could give your business the scale, skills and positioning needed to succeed in a global marketplace, please call us on 020 7099 2621 or email us for more information.