Updated: Aug 3
Author: Tomris Yavuz
Publication date: 03.08.2023
What is Strategic Partnership?
First of all, strategic partnership is the cooperation of different companies to achieve a common goal in business. This way, strategic partnerships can result in long-term profits and mutual advantages.
Moreover, companies in different sectors, which are generally not competitors, form a strategic partnership. Therefore, they expand their audience and begin to enter new markets. So, strategic partnership increases ROI as it allows companies to exist in different markets at a low cost.
6 Types of Strategic Partnerships According to business.com
Supply chain partnership
Advantages of Strategic Partnership
Both companies gain from a symbiotic relationship that advances the business, fends off challenges and competition, and builds leadership in the industry. These co-operations significantly change the market environment.
Companies that do not actively create and manage these partnerships will flounder on their own without the resources to remain competitive in a global market. The main reason is that more enterprises develop their partner ecosystems.
Some Big Companies That Have Engaged in Strategic Partnerships
1. Apple and Nike
2. Apple and IBM
3. Spotify and Starbucks
4. Google and Nestlé
5. Coca-Cola and McDonald's
6. Microsoft and Samsung
Strategic partnership or in other words “co-branding” is significant in terms of business development.
Power of Strategic Partnership
Let's talk more about the power of strategic partnership now:
1. First of all, mutual advertisement is made with the company you partner with. In this way, you have the opportunity to directly contact the customers of the company you are partnering with. This is a very effective strategy that provides a large number of new customers with little effort.
2. Secondly, when you collaborate with a brand from a different industry, the markets you reach also diversify. For example, let's take the partnership of Nike and Apple. While Apple is a world-renowned technology company, Nike is a sportswear brand.
However, in the past years, these two giant brands met on a common ground and collaborated, as a result of which Apple Watch Nike+ was born. The purpose of this sale is to accompany you while training by informing you about the calories you burn and the distance you cover. With this product, two brands operating in two completely different sectors have stepped into different markets.
3. As a result of stepping into other markets, your company's recognition will increase. As people get to know your brand, your brand awareness increases. Eventually, your customer’s loyalty and trust in your brand also increase.
The success of the company you are partnering with also increases your company’s reputation. You should keep in mind that the partnering company’s failure can also decrease your brand value. For this reason, you should choose your strategic partners well!
4. When you partner with a company outside of your field, you can combine different types of resources you have and use them together. For example, one company has production power in the industry and another company specializes in marketing. The joint use of these different competencies, expertise, or financial resources increases the efficiency of both parties.
5. Risks are distributed among the companies that make partnerships. In any fluctuation, you face possible losses with your partner, not alone. But remember, profits are also distributed just like risks!
6. New partnerships bring new creative ideas. Combining different experiences and perspectives can result in much more competitive products and services.
Tips for Successful Strategic Partnerships
In short, here are a few tips for successful strategic partnerships from BD Paths:
Define your goals
Do your homework
Be upfront of your expectations
Protect yourself legally
Establish effective communication
Organizations can access a practically endless marketplace of ideas, resources, and information with the help of strategic partners. But they need to avoid the dangers that result in unsuccessful relationships and untapped potential!