Strategic Alliances and
Partnerships

This presentation is made possible by the support of the American People through the...
What is a strategic relationship?

•  Any relationship where two companies work
together to cooperatively address a market...
Potential Alliances…
Many Opportunities in the entire ecosystem
Consultants

Media
Prospects

Vendors

Customers

Competit...
Why Strategic Alliances?

Developing and commercializing new
products on a global scale is too
complex and expensive for m...
What’s the Single Most Important Issue?

The Strategy
Structuring the Deal and Dividing the Pie
So That
Both Partners Can ...
Mutual Benefit
• 
• 
• 
• 

Corporate partners need you
Their R&D pipeline may be thin
They are looking for other sources ...
Top Five Strategic Deal Tools

•  Geography
•  Field of Use
•  Manufacturing Rights
•  Control of Development
•  Exclusivi...
Large Company’s
Dilemma
•  How to create innovative
new products?
•  Where to find breakthrough
inventions?
•  Access new ...
Reasons of Partnerships

•  “Spreadsheet” reasons
–  Speed entry into new areas of geographies
–  Increase revenue
–  Cut ...
Mapping Partnerships

High
Revenue &
Profit Potential
from the Partner
Low

Earning
Partner

Strategic
Partner

Limited
Pa...
4 Keys to Create Successful Alliances
•  Investment
•  Valuable resources from both partners
•  Synergistic opportunities,...
Where to connect?

CEO Office

Venture
Capital Arm
Product
Division

Operations /
Supply Chain

VP
Engineering
Vetting Process
•  Always requires a “deal leader”, champion
•  Friends vs. Foes
•  Corporations always looking to say “no...
Take Aways
•  Understand the ecosystem & motivations of each
party
•  Invest in these elements & ensure that the other par...
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7.5 strategic alliances and partnerships.pptx

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It's tough to build a company on your own. Many large corporations are looking to startups to fill their innovation gaps. A quick tutorial on what is a good partner and how to engage.

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7.5 strategic alliances and partnerships.pptx

  1. 1. Strategic Alliances and Partnerships This presentation is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this presentation are the sole responsibility of Rick Rasmussen and do not necessarily reflect the views of USAID or the United States Government. 1
  2. 2. What is a strategic relationship? •  Any relationship where two companies work together to cooperatively address a market, product, technology or resource •  From “Press Release” to Partial Acquisition
  3. 3. Potential Alliances… Many Opportunities in the entire ecosystem Consultants Media Prospects Vendors Customers Competitors End-Users Complimentary Service Providers User Groups Industry Associations
  4. 4. Why Strategic Alliances? Developing and commercializing new products on a global scale is too complex and expensive for many companies to go alone –  Funding –  Technology –  Infrastructure –  Credibility
  5. 5. What’s the Single Most Important Issue? The Strategy Structuring the Deal and Dividing the Pie So That Both Partners Can Thrive
  6. 6. Mutual Benefit •  •  •  •  Corporate partners need you Their R&D pipeline may be thin They are looking for other sources of technology Their corporate culture is challenged and need a startup mentality •  They are looking to cut off potential sources of competition •  Connections to foreign markets
  7. 7. Top Five Strategic Deal Tools •  Geography •  Field of Use •  Manufacturing Rights •  Control of Development •  Exclusivity
  8. 8. Large Company’s Dilemma •  How to create innovative new products? •  Where to find breakthrough inventions? •  Access new markets without risking a lot? Startup’s Dilemma •  How to find initial customers without spending a lot of money? •  Who will risk career to buy from a startup? Mutual Interests Drive Partnerships
  9. 9. Reasons of Partnerships •  “Spreadsheet” reasons –  Speed entry into new areas of geographies –  Increase revenue –  Cut costs •  “Halo effect” reasons –  To silence critics –  To respond to competitors announcement –  Press coverage
  10. 10. Mapping Partnerships High Revenue & Profit Potential from the Partner Low Earning Partner Strategic Partner Limited Partner Learning Partner Low High Partner’s Potential to Help You Develop Your Core Competencies
  11. 11. 4 Keys to Create Successful Alliances •  Investment •  Valuable resources from both partners •  Synergistic opportunities, not to mask weaknesses •  Interdependence •  Complementary assets •  Integration •  Linkages between many organizational levels •  Partners become both teachers and learners •  Importance •  Relationship plays a key role in partners’ long-term objectives
  12. 12. Where to connect? CEO Office Venture Capital Arm Product Division Operations / Supply Chain VP Engineering
  13. 13. Vetting Process •  Always requires a “deal leader”, champion •  Friends vs. Foes •  Corporations always looking to say “no” –  Finance –  Legal –  Engineering •  Due diligence process similar to acquisition
  14. 14. Take Aways •  Understand the ecosystem & motivations of each party •  Invest in these elements & ensure that the other party is also investing •  Importance of planning the Strategy

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