It is defined as an agreement between two companies that work together and pour their efforts into a specific field in order to achieve the desired goals and objectives for both. For example, this agreement or partnership may be between a company specializing in marketing and another company working in the production of electronic products. It should be noted that the strategic partnerships will add value to the companies’ products or services and expand their scope of work in the markets.
Types of strategic partnerships
- Strategic marketing partnerships: this is one of the most beneficial types of strategic partnerships for small companies that offer a limited range of products and services to their customers. The plastics industry is solely concerned with the process of producing plastics.
- Strategic Supply Chain Partnerships: This is one of the most common types of partnerships in the market. This is because their costs are low, their operations are simple, and the quality of the products offered through them is very high and good. In contrast, supply chain partnerships are among the most difficult types of agreements to maintain. Among the most prominent examples of companies that follow this method in their work are film production companies, as the film is produced and made available for viewing after the production company concludes an agreement with a photography company and then contracts with another company that works on financing, marketing, and distributing the film, and this is what is called chain partnerships. Strategic sourcing.
- Strategic integration partnerships: It is one of the more common types of partnerships in the areas of digital products and applications because it is good for applications to depend on each other, as through this it is possible to achieve a streamlined provision of services to the customers of both parties. Among the most prominent examples of these partnerships are the agreements between manufacturers of electronic devices and developers of programs and applications, and another example is the agreement that took place between Uber and Spotfiy when they created the feature of providing audio content for the customer’s journey, as each company relied on a certain technology in order to achieve a unique experience for customers. While the customer is waiting for the arrival of an Uber captain, he can link his account on Uber with his personal account on the Spotify application, and during the waiting period he can listen to any content he wants.
- Strategic technology partnerships: This is one of the types of partnerships in which a company enters into an agreement with a company that specializes in information technology in order to maintain the continuity of its performance in light of the technological developments that occur on a daily basis and that the company cannot provide on a permanent basis.
- Strategic financial partnerships: This is one of the types of useful partnerships because financing is very important for any business. A company can contract with a company specialized in financial matters, such as accounting, for example, as this enables it to monitor its business and revenues more accurately and clearly.
Advantages of strategic partnerships
- It offers many benefits to all types of companies, as it helps companies establish relationships with each other, enter new markets, reduce associated costs, and reduce related risks.
- Help to grow corporate business.
- It helps company owners establish business deals with other companies, which helps them improve the quality of services provided to their customers.
- It can increase customers’ confidence in the company’s brand and their awareness of it, which leads to an increase in the company’s revenue and returns.
Disadvantages of strategic partnerships
- The failure rate of companies that follow the strategic partnership method is estimated at about 43%, and 45% of companies were unable to continue to establish friendly and successful relations with their partners, due to several reasons, including not choosing the right partner, not understanding each other, and not respecting each other. each other’s backs
- The lack of accurate and clear information about the mechanism of strategic partnerships by business owners.
Read also: What do you know about strategic management ?
