Business growth doesn’t come from wishful thinking. As you know, it takes a lot of hard work. The growth of your business is not an option – it is a necessity. Coordinating the right mix of strategies to gain market share and improve client acquisition rates is essential to advance your firm in today’s economy.

1. STRATEGIC ALLIANCE
PART - I
PRINCIPLES – OBJECTIVES – PROCESSES
TEJASHWINI NIJAGULI

2. The growth of your business is
not an option – it is a necessity.
Coordinating the right mix of
strategies to gain market share
and improve client acquisition
rates is essential to advance
your firm in today’s economy.

3. A strategic partnership is a mutually
beneficial arrangement between two
separate companies that do not
directly compete with one another.
Companies enter into strategic alliance
to achieve a particular objective,
hence they need not merge capital
and can work independently.

4. WHY
STRATE
GIC
ALLIAN
CE?

5. To Penetrate into a new Market & expand business
reach
Provide Flexibility to Business
To achieve competitive advantage
Rational distribution of risks especially in research &
development alliances
Utilization of partner resources such as man power,
technology & knowledge
Alliances facilitate access to Global Markets
Increase consumer comfort
To manufacture new version of a product

7. There are three vital steps to partnering success
1. Determine what it is you need but don't have: customers,
capital, special expertise, products, production capacity, or
distribution channels
2. Determine who has what you need
3. Ask them for it, but, first make sure you have something
they want or need. (this last point is the most important)

8. Business cycle for product innovation is the
Major Criteria for Strategic Alliances. The
business cycle is determined by the need to
innovate and continually create new products
in an industry.
Reasons for Strategic Alliance

9. When the business cycle is slow in nature owing to the various
external and internal factors, the company’s competitive
advantage is relatively shielded for a relatively long time period.
Even the company doesn’t come up with the new and latest
offerings for the target market.
Slow Cycle of
the business
Standard
Cycle of the
Business
During the standard cycle of the business, the company
launches the new line of products every few years and in
regular intervals but may or may not be able to maintain its
leading and top as a market leader.
Fast Cycle of the
Business
In the fast cycle of the business, the company needs to
come up with an offer the new range of products on a
constant and continuous basis to survive in the market. The
company’s competitive advantages are not protected.

10. 6 Objectives
of Strategic
Alliance
Enhance
Capability &
Competence
Enhance
Value
Creation
To
Leverage
resources
Enhance market
position & achieve
business
development
To Achieve
Globalization
Risk
Management

11. Trust
Success Factors for Any
Alliance
Senior
Management
Support
Ability to meet
performance
expectations
Clear Goals
Partner
compatibility
Commitment to
long-term win-win
relationships

12. “Synergistic Momentum”
Essentially, the act of partnering with another brand
gives new attention and interest that your brand
may not have had otherwise.

13. PROCESS OF
STRATEGIC ALLIANCE

14. 10- Step Process
too Build a
Successful Alliance

15. Step 1 – Identify
Potential Partners
Identify potential partners through Google searches,
LinkedIn profiles, city information, and any other
resources you have access.
Choose counterparts that you can easily collaborate
with, develop good connections, and those that will
actively introduce you to new clients rather than waiting
for an opportunity.

16. Gather data and research your
potential alliances. Your goal in
this step is to support your
position that a strategic alliance
with this firm will be mutually
beneficial.
Step 2 - Research
Potential Partners

17. Step 3 - Make the First Call
In a tough economy where all professionals
are feeling the crunch, everyone can use
extra help with business development.
Contact your selected alliance prospects and
schedule an appointment to discuss
opportunities for working together.

18. Your goal in this step is to determine suitability to form
an alliance; the most effective way to earn their
business. This will support your case for forming an
alliance and position you as an industry expert and
influencer.
Make a mutual decision. If you determine working
together will benefit all parties involved, your clients
and each firm, schedule your next appointment to
finalize your agreement.
Step 4 - The First Meeting

19. Step 5 - Identify Specific Opportunities
Brainstorm about every opportunity to work
together. Focus on core interests and business
themes you have in common. Discuss objectives,
obstacles, and expectations for your future
relationship. Determine what your alliance
should accomplish over the next 12 months.

20. Step 6 - Establish
Revenue/Profit Goals
Determine ideal and minimum revenue and/or
profit goals for your alliance. Your ideal goal
should represent the revenue and new assets
under management it will take to make the
program a success. The minimum goal is what
must be achieved in order to continue the
partnership.

21. Step 7 - Develop an
Agenda
Create an agenda that includes any event
or campaign you plan to execute with
your strategic alliance over the next 12
months. Identify the goal for each item, the
strategy you will use to obtain results,
when the event will take place, and who
will be responsible for implementation.

22. Step 8 - Present the Plan
Schedule a meeting with your potential
alliance to present your plan. Review your
opportunities, strategy, and the specific
steps you will take to reach your goal.
Discuss profit and revenue goals as well as
expenses. Look for any gaps in your initial
plan and make necessary modifications.

23. Step 9 - Commitment and
Implementation
Upon mutual agreement, make
a commitment and implement
your plan. Identify team
members who will act as a
pointperson to ensure
implementation takes place as
scheduled.

24. Step 10 - Analyze and
Follow Up
Continually refer back to your alliance
plan to monitor and celebrate successes
and make changes when you find
something isn’t working. You can have
the most brilliant plan in the world, but it
will do no good if it isn’t implemented
and followed up on regularly.

25. According to Gracie Page, a content marketing
expert at Y&R London, a brand partnership’s
purpose is “to build a vehicle that allows the
user base of both brands to get on board, and
go on an adventure together.”

26. Although strategic partnerships were rated as important,
almost half reported high failure rates (failure rate of 60%
or more).
Anybody who has ever worked on a strategic partnership
knows about the difficulty and challenges.
85% of Companies viewed partnerships and alliances as
essential or important to their businesses.

27. In our upcoming slides, we will explain the risks, challenges,
advantages and disadvantages of Strategic Alliances.