Strategic Partnership – The Alive Advisor Platform

When two companies agree to share their resources to achieve a common set goal but still remain independent after formation of the alliance is basically known as the strategic partnership. A strategic partnership will serve as a positive extension for a growing brand. This merger in return will take exceptional care of your clients and their customers. Initially, selecting the right partner is critical, but it provides substantial effects over client’s business performance.

At AliveAdvisor we take comprehensive approach in building alliances and partnerships, as Brand partnership strategy is a very complex union. Henceforth, we ensure that your customers will have peace of mind knowing that the best long-term business relationship have been chosen to handle and resolve the many intricate issues, which were a burden alone. Also, an appropriate strategic partnership management also delivers consistent, predictable and incremental growth for both organizations.

Strategic partnership agreement will create more value and able to build entire portfolios of practical and value-creating corporations. The positive collaborations of partner strategy bring positive results in business areas such as finance, marketing, technology and supply chain. With humble strategic business partnerships, AliveAdvisor brings onboard the industry’s best expertise and tools or for that matter resources to avoid becoming stagnant or outdated.

why form a strategic partnership?

AliveAdvisor particularly advices all its clients on creating strategic partnership, as the organization then, are better capable in serving its customers with services or selling their products to a larger audience. Not only managing sales, companies can swiftly expand their distributing network to vivid territories without investing in added infrastructures.

Benefits of strategic partnership:

As per a short survey conducted, global strategic partnership has a very low percentage in terms of strategic joint-venture failures. The reason behind the successful association of brands is that, alliances and partnerships have always been a part of human history, be it from private to public affairs. Risk sharing has been a part and parcel in contractual relationships. For a wide array of reasons, companies of wide spectrum globally have indulged in building strategic partnerships and it works well too, if one manages to cut the risks in a resourceful manner.

AliveAdvisor comes in at this stage, where we create strategic business partnerships for a long-term and fruitful business association and focused on creating joint value for two or more organizations. The key benefits of a strategic partnership are sharing resources and expertise, penetration and presence in new market, huge and expanded production capabilities and non the less outpace the competition through un-ending innovation.

The most beneficial examples of global strategic partnership are Starbucks and TATA in India, Maruti and Suzuki, Spotify and Uber and not the least Google and Luxottica.

Types of strategic Alliances:

There are three types of strategic alliances and AliveAdvisor suggest all their clients to make use of each of these in varied circumstances and their success and failure depends upon selecting the right type of partnership.

Joint Venture: A joint venture strategic partnership is established when two companies come together to form a new child company. The most common term here used for this alliance type is the JV. To be more precise, if Company A and Company B each own 50% of the child company, it is defined as a 50-50 Joint Venture. If Company A owns 70% and Company B owns 30%, the joint venture is classified as a Majority-owned Venture.

For Example: Google and NASA together joined hands to develop a product Google Earth. TATA, and SIA together joint ventured into forming Vistara airlines in India.

Equity Strategic Alliance: This alliance comes in formation when one company acquires a substantial amount of equity in another company. To be more specific, if 45% of the equity is purchased in a target company and this trade will give the acquiring company significant influence in Target Company. Both companies are said to have formed an equity strategic alliance.

For Example: Panasonic, in collaboration with Tesla motors for using their batteries in the car, Walmart had invested in Indian e-commerce giant Flipkart.

Non-equity Strategic Alliance: A non-equity strategic alliance is created when two or more companies sign a contractual relationship to pool their resources and capabilities together.

For Example: Alliance between Starbucks and Kroger, Maruti-Suzuki alliance in India.

also read:- Business advisory companies

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