17th February 2022

It’s time for a fresh look at Strategic Alliances

Pre covid establishing the right partnerships with other businesses and suppliers was one of the most powerful corporate tools for dealing with the fast pace of changing markets, consumer preferences and emerging technologies. 

As we begin to emerge from the pandemic, the need for collaborative strategic alliances between businesses and their service and logistics providers is now more necessary than ever.

Or to put it another way, in the new normal it’s going to be difficult to be successful alone. The real winners will be those that can offer their clients not only their services but relationships and discounts from other businesses that provide solutions their clients desire and need.

No matter what sector you are in, a challenge exists to maintain client relationships and loyalty in a world that has seen massive consumer shifts both emotionally and behaviourally because of Covid.

That’s why strategic alliances between likeminded organisations are a sensible business strategy and one many businesses are looking to adopt and, in many cases, reignite in the years ahead.

Far too many of us have paid lip service to the benefits of strategic alliances and dipped our toe in the water, but how many of us have got it right. I’d like to remind people of the key benefits of collaboration, but first let me explain what I mean by a strategic alliance. 

Strategic alliances are agreements between two or more independent companies to cooperate in the manufacturing, development, or sale of products ?nd services, or other business objectives.

For example, in ? strategic alliance, Company ? ?nd Company B combine their respective resources, capabilities, ?nd core competencies to generate mutual interests in designing, manufacturing, or distributing goods or services that benefits not only them but their respective clients.

Everyone should consider a strategic alliance 

I’d like to share with you ten reasons why every business no matter how small or large should consider strategic alliances. 

Greater choice

The right relationship can allow you to offer greater choice of solutions to your clients. You can even enhance your service proposition with products and services from your new alliances. 

Increase your reach

The right alliance is about mutual benefits and communication allowing you to get your messages In front of clients that are most appropriate for your proposition. Your communications reach expands as your chosen alliances sales people and marketing communications promote your business and service proposition. 

You can maximise sales

Not only will your marketing and advertising penetration increase as both businesses share marketing and social media costs your sales should also increase. This is because you have the opportunity to parcel your products together with strategic partners.

Utilise the intellectual strength of alliances

As your alliances develop your business will have access to a wider group of skilled professionals whose expertise can be used in helping you drive both businesses forward. ? sharing of knowledge and expertise can include anything from marketing skills to management to branding to technical know-how. The combination of these shared resources increases the value of each partner in ? way that is not possible when each business acts alone.

Segment profitably

One of the key criteria for selecting a suitable alliance should be do they have the type of clients you want to speak to. If you get this right, you can ensure your service proposition gets in front of the right people more often maximising your marketing spend.

Enhance your credibility and reputation

Alliances can share endorsements and recommendations enhancing the credibility of both businesses with existing clients and potential new customers’ 

Taking on the big boys

When companies pool their resources ?nd allows each other to increase manufacturing ?nd distribution capabilities, economies of scale can be achieved. Forming strategic alliances with the correct partner ?nd developing effective execution strategies also allows smaller businesses to compete against larger competitors. 

Solve problems faster

With the right alliance agreement, you can share key objectives and each alliance can learn from each other to improve their strategic plans.

Accelerate growth

The right business tie up will allow you to reach more potential customers faster than you would without the relationship in place. This can help you meet internal and external growth targets. 

Personal development

We all have our comfort zones and after all people have endured over the last few years it would be easy for many of us to stay within these and keep doing what we have always done. However, as the old saying goes that will only bring us what we have always achieved. If we want to expand as businesses and individuals, it is time to look more closely at the right strategic alliances for your business and partnership for your future personal development.

Over the next few weeks, I am going to look at how you select the right strategic alliance, approach them and develop a solid and profitable ongoing working relationship.

John Joe McGinley 

Glassagh Consulting February 2022

John Joe McGinley, Glassagh Consulting