Strategic Alliances - Strategic Alliances are recognized relationships, either formal or informal, between various businesses to promote and work in concert, through using each others services, referring directly between members and conducting business in a way which benefits all involved.
An industry which strives on strategic alliances is the bridal industry. From a wedding planners' recommendation to having independent business owners recommend each other, this creates a stream of business for all the various service and retailers.
Aspects to consider when assembling a strategic alliance include the ability to give and to get the referrals and work flow which everyone seeks. Some individuals are very welcoming with new opportunities, but can be less welcoming with giving opportunities out.
Strategic Alliances Guidelines
- Pick a compatible partner
- Choose an ally whose products & market strongholds COMPLEMENT firm's own products & customers
- Learn thoroughly & rapidly about partner's technology & management
- Be careful not to divulge competitively sensitive information to a partner
- View alliance as temporary
Budget: $250 - $1,000 monthly