Strategic Business Partnership & Joint Venture Development
What is Strategic Partnership?
A strategic partnership involves creating a business partnership between two or more business persons or companies to share resources, innovative ideas, and technology, knowledge, expertise, capabilities, skills, trustworthy vendors, distribution channels, customer base as well as facilitate access to new markets, for mutual growth and success.
Although the strategic partners are independent, they mutually generate value for each other and endure risks together.
Why Create Strategic Partnerships?
If done right, strategic business partnerships can prove to be your business asset. Let’s see how strategic partnering can enhance your business growth:
1. Brings In More Business
If you want to grow your business, boost your profits and revenue then creating strategic business partnerships is the rapid way to achieve your goals with ease. It helps to bring in more business, apart from offering significant benefits and cost savings.
2. Gets New Customers
Growing a customer base is one of the main goals of any business, and a functional strategic partnership agreement helps to achieve it. Partnering with another business provides you a reach to their customers as well. This being mutual, businesses go for new partnerships to increase their market share.
Uber, the ride-hailing company formed a strategic partnership with Spotify, the music streaming company, for their mutual benefits.
Uber lets its customers stream Spotify and enjoy personalized music whenever they take their ride. This also makes Uber riders want to subscribe to Spotify Premium. The personalized music experience with its ride offers Uber a competitive advantage over its competitors.
Thus, both the companies attract and acquire new customers.
Strategic partnering is the right solution for your company to acquire new customers without investing in extra capital.
3. Adds Value for Loyal Customers
Customer retention is as important as getting new customers. Satisfied customers promote the products through word-of-mouth marketing. Partnering with companies that offer products related to yours cuts down the risk of some competitor company reaching and acquiring your customers. The strategic partnership adds value for your existing customers and thus helps you in retaining them.
4. Gives Access To New Markets
If the strategic partners have customers from a different market than yours then new-market penetration becomes easier than trying to enter the new market on your own. Sometimes, partner companies get to access the new market without any extra capital, additional routes, infrastructure, and distribution network expansion, which is not feasible to do on their own. Besides, building trust is very crucial when entering a new market and the trust your partner company has already built in the market benefits your company as well. This can help you get ahead of your competitors.
5. Expands Geographic Reach
Expanding into a new geographical market can positively help in the growth of your business. Partnering with companies in different geographic locations offers an opportunity for geographic expansion. Also, leveraging your business partner’s expertise and resources can help you reach your business goals without bearing the expenses and overheads on your own.
6. Helps in Extending Product Lines
If product diversification is your main objective, then a strategic partnership is advantageous in getting access to the resources, knowledge, innovative ideas, and market that are needed to broaden your product lines with minimal investment. Bonding strategically is mutually rewarding so you can also partner with a company that offers complementary products, services to enhance the quality of the existing products or develop the latest products, affordably.
7. Enhances Brand awareness
When you strategically team up with business partners with a huge customer base, you escalate the chance of enhancing your brand awareness as your logo, design and other branding aspects is now viewed by a greater number of people.
8. Builds Brand Trust
Customer’s trust in your brand will certainly grow if you create good business partnerships. If you have entered a new market and do not have a strong local presence then customers tend to doubt whether you really offer what you claim to offer. On the other hand, if you team up with well-established companies that have already proven themselves and won the trust of the customers, then it becomes easier for you to build your brand trust in the new market.
9. Helps in Overcoming Business Fears
At times, all business owners feel uncertain and worried when they face changes that can impact their business. Teaming up with great business partners ensures that you are not dealing with those challenges alone. It brings in solutions, innovative ideas, abilities, expertise, and strengths of several people to work out complex challenges and manage difficult times. This ensures your business’s longevity.
10. Helps In Boosting Sales And Revenue
You can create more than one strategic business partnership to form multiple revenue streams and improve your capacity to sell to a bigger market. The more companies you strategically join to enter a target market, the more probability you have for boosting your sales and revenue.
Strategic Partnering is the right approach for your business if:
- You are looking for ways to sustain as well as thrive post-pandemic.
- You are seeking to expand your business through new market development.
- You want to cut down the cost and risk of your R&D.
- You need new skills, expertise, and proficiency to grow and develop.
- You desire to improve your competitiveness and beat your business competitors to win the market.
- You are trying to set new standards in the industry.
- You are striving to find new customers and increase sales.
How To Create Strategic Partnerships for Strong Business Growth?
If you are looking for strategic partners to build the most advantageous and stable strategic business partnership then you definitely need guidance from the experts in the field.
Our company, Dhunicorn has a global network of more than 40,000 public listed companies and private companies. We offer the best strategic business partnership opportunity to meet your needs. Our business experts can support your company to develop a successful strategic business partnership starting from the most important step of getting the right partner, model design, strategic planning till the execution and implementation stage.
Find out more from us today!