The consumer landscape is a dynamic one. It is an ever-evolving environment where transformations can take place at the drop of a hat. We live in a world that is heavily influenced by technology. If there is one thing that is as clear as day about technology, it is that it progresses rapidly, at an exponential rate. As such, consumer behaviours can undergo rapid shifts that can be almost impossible to predict.
Although this evolving landscape gives rise to new opportunities that can be capitalised upon, it can also be quite difficult for businesses to anticipate the consumers’ changing needs or to address the underlying problems. Another crucial factor is the presence of other entities in the market that are trying to solve the same problems or servicing the same markets. This can create additional obstacles in the path of a business.
Therefore, to ensure competitiveness and future growth trend, it is vital to look for or to develop strategies to stay ahead of the curve. In recent times, pursuing global partnerships has been one of the leading strategies that corporations follow. As the name suggests, it entails establishing alliances with overseas businesses. This can have huge positive repercussions for any business if done correctly. The synergy that is created as a result of the alliance, can provide several key benefits.
Access to Unique Skills & Expertise
Each company has its own core competency around which they build a set of other skills and expertise. When two companies form a partnership, there is an exchange of these unique skills and expertise. This access to a whole new set of resources can be vital for any business. It can serve as fresh blood into their ecosystem, using which they can address problems both internally as well as externally.
The end result is that both companies can focus their slew of expertise, on any project that they are collaborating on, which leads to not only the development of a better product or service but also its execution in the most perfect way. For example, one company could be better at the technology part and developing a new product, whereas another one may be much better at marketing, public relations and distribution networks. Each could leverage the other’s strengths to achieve a common end goal.
Increase In Revenue
Strategic global alliances are usually one of the cheapest methods to form a partnership to gain access to an entirely new geographical market. The costs are shared between the partners and they are easily covered by the benefits that each company reaps. When two forces are united, a synergy is created which makes the combined effort much more effective. All this leads to an increase in revenue.
Growth in revenue is an absolute necessity for any business. It is quite literally the life force of any undertaking and is always one of its main priorities. Alliances on a global level open up new territories which can be served with one’s products or services which can propel revenues. When a company has more or less saturated its home market, global markets are naturally the next step forward. Therefore, partnering with a company that already exists in a potential foreign market, that can assist in driving revenues, is a much better option.
Minimising Risks
Risk is a natural companion to entrepreneurship. Whenever a business enters a market, tons of risks are already present. Expanding into a new one, that too in a foreign land, can be even riskier. There are just way too many unknowns for a company to be able to make all the right decisions. This is where global partnerships can come in handy. Having a company, that knows the landscape and can fit with your mission statement like jigsaw puzzle pieces fit together, can be a huge boon.
As a result of expertise sharing, products and services can be developed much faster. This is important because of the earlier mentioned, ever-changing consumer landscape. Also, research and development cost a lot. Through partnerships, these costs can be shared and each company gets better value for the money they invest. Risks are also greatly minimised when companies tackle problems together. Again, sharing of each other’s resources come in handy.
Better Competitiveness
The market is full of other players that are always trying to get the bigger piece of the pie. To stay ahead, it is imperative that a company enhances its competitiveness. That means developing better products, at lesser costs and doing an impeccable job to reach as many consumers as possible. This is where the old adage, “one and one makes eleven” becomes relevant. Naturally, when two companies unite, every aspect gets enhanced.
Strengths become more strengthened and weaknesses are weeded out. Missing skills in one company are filled in by the other and vice-versa. All of this enhances the competitiveness of the combined venture which is a huge edge in the cut-throat market conditions. Even a little advantage over the other guys can lead to much more success. In fact, if timed correctly, two companies could enter into an alliance that can make it hard for others to even enter the market.
Evolving Practices
This is one of the more subtle and abstract benefits that partnering with another foreign organisation can have. Each company has its own culture and therefore, its own way of doing things, whether it is handling day to day activities, marketing, brand building or general practices relating to management. When a company partners with another one, there is a subtle assimilation of their culture.
There is a natural tendency to observe and learn among people and the same goes for companies too. If an observation is made that something can be done in a better way, the same can be incorporated into your own company. This helps evolve the very culture and can provide some really powerful insights and a fresh perspective towards conducting business.