TC: CREATING ONE STRATEGIC ALLIANCE
The term, Strategic Alliance has been part of the BizQuack blogs for a while yet very few of our members have formed a working, Strategic Alliance relationship. Your challenge today is to set up a process which will lead you to the establishment of at least one meaningful Strategic Alliance.
By definition, a Strategic Alliance in business is a relationship between two or more businesses that enables each to achieve certain strategic objectives neither would be able to achieve on their own. The strategic partners maintain their status as independent and separate entities.
Follow these steps as your Tuesday Challenge for this week:
- Clearly define your target market: This is the basis for the selection process so you must be able to clearly identify your target market, the people that need the benefits you offer the most. This alliance will offer you both economic and marketing advantages.
- Develop the selection criteria for your strategic partner: The most important aspect in the selection process is the ability of your strategic partner to add value to your company. Your strategic partner has to have the same value system as you have; that includes having the same goals and strategies. Does your potential partner have a good reputation in business and in the community?
- Start a list of businesses that you feel would make ideal strategic partners. The next step is to review and prioritize your list. At this point in time all options are open. You don’t necessarily have to personally know your future strategic partner. If the business they own is one that fits all your criteria, then you can contact that person.
- Now is the time to develop a “Partner Proposition”. Remember the ability to select your ideal strategic partner will depend a lot on their perception of the benefits that they will get.
- State why they should want to partner with you (benefits)
- Why do they need to partner with you?
- Talk about the impact that such a strategic alliance will have on your common target market.
- Time for Due Diligence: If your selection is interested, dO your due diligence on the company and whether such a relationship will be beneficial to Your targeted partner should be doing the same on your firm.
- Develop your joint plan: how will you approach your target market? How will you share any possible expenses? What is your communication and meeting frequency? Other issues will come up in this initial planning phase. Make sure that everything is in writing and understood (approved by both parties in writing).
With this new relationship you should be able to make an impact on your target market as well as on your bottom line.
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