The Mutual Advantages Of Partnerships Can Be Substantial

There are many reasons why businesses form strategic partnerships, and mutual advantages can be substantial when the right partnership synergy is achieved.

Partnership benefits can be varied – everything from enhanced brand awareness, to access to more resources in more countries, to involvement in new industries.

Here are five key reasons for forming a strategic partnership, and how it can benefit your business.

1. Enter new markets

With Australia and New Zealand accounting for only two per cent of the world’s GDP, geographic expansion to new markets and customers can deliver lucrative results. With the right partnership in place, risks can be reduced, and opportunities optimised.

2. Develop a competitive advantage

International business often involves specialist skills from people in different fields. Rather than developing and maintaining new skills in-house, it can be commercially advantageous to partner with a business that offers the complementary skills required. This often delivers winning results for all involved and enables each company to focus on maintaining their core competencies.

3. Build brand awareness

Strategic partnerships are formed on shared values and vision, so the association serves to strengthen the respective brands. Strategic partners can also collaborate in shared campaigns to build brand awareness across their respective communities, opening up more opportunities for generating new business.

There are many examples of successful co-marketing partnerships, where the companies involved – like GoPro and Redbull, Uber and Spotify, and Apple and MasterCard –offer mutually beneficial services to customers with a strong brand fit.

4. Share resources

Imagine the resources that you will require to continue to develop your business to be successful into the future. Resources could include technology, high quality vendors, talent acquisition or a connected network of aligned professionals – and imagine what you could achieve by immediately accessing a partner with these type of resources.

Strategic partnerships can generate the economies of scale that enables access to a rich range of resources and achieves the critical mass that is often needed for international success. Such critical mass can also attract other ‘like’ business partners and improved vendor arrangements.

5. Enable innovation

The strategic alignment, along with the collective skills and resources of each strategic partner, opens the opportunity to drive innovation for the benefit of all. This can be achieved through shared programs that have a concerted focus on advancement.

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Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.