Introduction
A strategic partnership is, essentially, two businesses amalgamating their contributions to create a business model with increased efficiency and reduced cost to the company. These combinations could be in the supply chain, integration of technology, distribution of product, marketing, etc. It is not like the typical absorption of another rival entity to increase the market share and brand rather an agreement between two companies with different products and services which can complement each other. The sharing of resources in such a way thus results in mutual benefit.
For the purpose of understanding and based on such partnerships in the market. The strategic partnerships can be divided into five basic headings: –
- Strategic Marketing Partnership
- Strategic Supply Chain Partnership
- Strategic Integration Partnership
- Strategic Technology Partnership
- Strategic Financial Partnership
Strategic Marketing Partnership
The easiest way to define marketing partnerships is when two companies collaborate to achieve a mutual benefit. Wherein the first brand provides the second with a market product. The second moves forward to the target audience to prove the objective. This can further be expanded into Affiliation, Content, Distribution, Charitable, Joint products, Licensing, Loyalty, Product placement, Shared stores, Sponsorship.[1] This means that establishing a partnership’s marketing goals then breaking them down into manageable activities. Also deliverables from the start is an essential first step for entering into a partnership.
Strategic Supply Chain Partnership
The most basic aspect of a relationship between two companies is the vision that both have of their company. These visions of what it takes to be successful in their respective markets; need to be aligned or overlapping for the partnership to develop and remain strong. The relationship must include the strategic plans of each company. An example is the world of external software development. To make a relationship between two partners sustainable and create value. There must be a clear understanding of intellectual property, market exclusivity, and more. If the partner doing the work on behalf of the customer tries to combine the work that; he pays for his own market access, this would completely undermine the relationship.
The common vision and strategy in this example; is one where one party needs access to valuable intellectual skills to succeed and the other offers them. On the other hand, the ability to replenish the buyer’s central investment is essential to the success of the market. Since both companies approach their joint activities with a focus on vision and strategy level. The detailed plans must also be consistent. The plans in question define the resources involved, the milestones for the main activities and the responsibilities of both parties. If this is not the case, false expectations are set and if problems arise. The ability to solve them is reduced.
Strategic Integration Partnership
This kind of partnership as the name suggests refers to a business relationship where two prospective partners integrate their products to develop a deliverable for market revolutionization. Such integration must be differentiate from other partnerships because the amalgamation here delivers a product which encapsulates. Examples of this kind of services would be the Nike plus due to the Nike and Apple partnership, the Uber and Spotify partnership, the Shazam and Apple Music partnership or the integration of the Jordan brand with Nike resulting in a multi-billion dollar business, which in turn for a particular sneaker partnered with Dior and created a new integration.
Strategic Technology Partnership
This type of partnership typically includes a business that is a provider of a service but does so under the umbrella of another company. This partnership, therefore, integrates business into another. While the service-provider receives a benefit in the shadow of the other entity, this entity mutually benefits when consumers are affording the aforementioned services. Examples of this kind of partnership would be the food delivery applications such as Zomato and Swiggy. The partner restaurants and their certified street food vendors provide their services on the application and thus engage in a business partnership of this sort. Similar would be the case with cab services providers such as Uber and Ola or for hospitality services such as hotels, flights or ferries on travel websites.
Strategic Financial Partnership
This kind of partnership usually refers to a business relationship between corporations where the accounting and finances of a company are usually outsource to an accounting or law firm. For reasons of wealth management, corporate restructuring, or public offerings, all the kind of work requiring due diligence in the field of finances is outsource to the specialty firms. The work of market giants Deloitte, PWC and Ernst and Young typically revolves around managing these assets of other companies and brands.
Reference:
[1] https://econsultancy.com/a-complete-guide-to-partnership-marketing-part-one
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