Let’s have a look at six convincing reasons why strategic partnerships are important for your business’s growth, success, and longevity.
1. Strategic Partnerships Give Your Business A Competitive Edge
You might have heard the saying, “two heads are better than one,” and nothing could be truer when it comes to strategic partnerships. Working within a partnership with a genuine win-win intention can give your business the edge it needs to surpass its competitors. If you decide to continue working exclusively on your own, you run the risk of your business’s growth becoming stagnant.
Do keep in mind, however, that a poorly thought out partnership can hinder rather than help your business. Without proper consideration, all your efforts may eventuate to nothing.
2. Strategic Partnerships Give Your Business Access To Additional Resources
Think of all the resources you use to ensure the success and continued growth of your business. These may include access to certain programs or software, a large social media following, or a strong network of industry professionals in your area. Imagine the potential your business could reach if you were able to take advantage of other business’s expertise and resources.
Strategic partnerships open up the opportunity for businesses to share their secrets for success with one another in a way that benefits all parties involved. Just remember that if you’re not generous with your resources, you can expect the same attitude back from your partner.
3. Strategic Partnerships Grow Your Customer Base
Growing your customer base can not only save a business on the brink of collapse, but take it to a whole new level. So if you’re struggling to capture the interest of new customers, a strategic partnership could be the answer. Let’s have a look at an example.
A few years ago, fashion retail giant H&M partnered with high-end designer Alexander Wang. Through this strategic partnership, both parties were able to grow their customer base. On the one hand, H&M wanted to assert its position as a relevant, on-trend fashion destination, and in doing so, attract customers who generally shop for designer clothes and accessories. On the other hand, Alexander Wang wanted to capture consumers less familiar with high-end fashion, in order to make an impression on a generation of future customers.
4. Strategic Partnerships Give Your Business Access To New Products/Services
A recent survey revealed that 27 percent of executives cite the diversification of their products as the number one goal of strategic partnerships. Access to new or different ideas, materials, and expertise will give your business the opportunity to improve current products and create new ones.
Creating new and innovative products without the help of a strategic partner will most likely require a hefty financial investment. A struggling business simply cannot afford that kind of risk.
5. Strategic Partnerships Help Your Business Reach A New Market
Sometimes, growing your business requires expanding into a new market, whether that is geographically or otherwise. The partnership between Google and Luxottica is a fantastic example of this.
Tech company Google and luxury eyewear company Luxottica partnered to create attractive Google Glasses that were both functional and fashionable. Google’s original glasses targeted the tech market alone. And, Luxottica’s eyewear attracted style-conscious shoppers looking for chic glasses. By working together, Google was able to reach the fashion market, and Luxottica the tech market.
6. Strategic Partnerships Strengthen Weaker Aspects Of Your Business
After reading the five points above, it’s clear that the benefits of strategic partnerships are many and diverse. A functional partnership can strengthen the weaker aspects of your business, so you can grow and expand in a way that would have been impossible on your own.
Remember that there is strength in numbers and success comes when we work together. A worthwhile strategic partnership is greater than the sum of its parts, and together, you can reach new heights.
Written By: Simone Novello