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Strategic Alliances - The Art and Opportunity of Creating Them
 

Strategic Alliances - The Art and Opportunity of Creating Them

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How to develop strategic alliances

How to develop strategic alliances

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  • Quite neat - thanks for sharing - if I may I will use some of the ideas expressed in a forthcoming presentation. Thanks, Jim
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Strategic Alliances - The Art and Opportunity of Creating Them Strategic Alliances - The Art and Opportunity of Creating Them Presentation Transcript

  • The Art and Opportunity of Building Strategic Alliances Presenter: Anita Campbell How to grow your business faster and save your sanity with business partnerships
  • Today’s Partnering Agenda
    • What is a strategic alliance?
    • Criteria for successful partnerships
    • Who should you partner with?
    • How to establish partner relationships
    • 7 Good Reasons to Partner
    • 3 reasons NOT to partner
  • The Power of Partnerships In 1980, upstart Microsoft partnered with then-giant IBM. The Microsoft DOS operating system was distributed with IBM’s new personal computers. $53,000,000,000
  • What is a strategic alliance?
    • Means many things to different people
    • Can describe:
      • Cross referrals
      • Outsourcing to 3 rd parties
      • Co-marketing
      • Online affiliate arrangements
      • “Business partnership” arrangements
      • Joint venture companies
      • Legal partnerships
  • Formal Tech Partner Programs
  • Definition: Business Partnership
    • Today we will focus mainly on “Business Partnerships”
    • Criteria:
      • Each side brings something to the table the other doesn't have
      • Each made strategic decision not to spend the time or money to do it alone, or can’t do it alone
      • Together, you are better equipped to meet a market opportunity
  • Do You Need A Partnership?
    • ASSESS YOUR NEEDS
    • Evaluate your situation – do a SWOT analysis if necessary
    • Walk in your customer’s shoes
      • What do they need? Versus what you offer
    • Observe competitors
      • If they are ahead, how do you catch up fast?
    • Evaluate market opportunities
      • Do you have everything you need to capture a market opportunity?
  • Do a Cost Benefit Analysis
    • Evaluate partnering against not partnering
    • Speed
    • Focus
    • Make vs buy
    • Sometimes partnering is the ONLY option
  • Do You … REALLY … Need A Partnership?
    • 75% OF ALL PARTNERSHIPS AND ALLIANCES FAIL
  • Establishing Partnerships - You Us Me
    • YUM Method: Broach a partnership with another party in this order:
    • You – what’s in it for the other party
    • Us – what can we achieve together
    • Me – what I get out of it comes last
    You Us Me
  • PESD to A Partnership
    • P = Paint a picture of the partnership opportunity and potential
      • Example: “There is an opportunity for you to extend your reach into XYZ market by ….”
    • E = Explain the mechanics of how you see it working
      • Example: “If you can advance more inventory without requiring up-front terms, our company can accept more big orders. Require a 20 deposit, and allow the remainder to be paid out over time. In return we will ….”
  • PESD to A Partnership (cont’d)
    • S = Sell the benefits
      • Be prepared to demonstrate with hard numbers, such as “… this deal would double sales on your XYZ line.” Remember to focus on the benefits to them, not you.
    • D = Document the relationship
      • Partnerships may involve formal arrangements such as contracts, or in other cases something less formal. At the very least there should be an email or letter outlining the arrangement.
        • Tip: document it fast. Deal momentum can die.
  • 7 Good Reasons to Partner
    • Partner with suppliers to finance the growth of your business
    • Open up new markets
    • Get access to valuable training and tools
    • Establish credibility
    • Strategically add specialty expertise
    • Round out your product or service offering
    • Meet governmental contracting requirements
  • Be Choosy When Partnering
    • -- Warren Buffett, the world’s second richest man, adapted from Blaise Pascal, 17 th century mathematician
    “ All man's miseries derive from not being able to sit quietly in a room alone.”
  • 3 Warning Signs NOT to Partner
    • No compelling goal : You don’t have a specific business goal to pursue jointly
      • Use the “revenue measure”
    • Vagueness : Your partnership is vague
      • Small businesses don’t get much out of vague “marketing” partnerships – better off selling instead
    • No Commitment : Your partner (or some faction within it) is not committed
      • The “kiss of death”
    • Anita Campbell
    • [email_address]
    • 330.242.1893
    • www.smallbiztrends.com
    Thank you! Credits: Slide # 9, various industry studies including Vantage Partners Slide #10, Kare Anderson, www.sayitbetter.com , as stated in a Small Business Trends Radio program © October 2006, Small Business Trends LLC