Strategic partnerships are termed as a formal and legal relationship between two individuals or companies to work towards a mutual goal. Both parties will offer their services from their individual ends. These services are synergized so as to benefit both parties. The key to this is strategy. Every partnership is based on a specific strategy that may be based on improving sales, customer outreach, sharing data, collaborating on research, etc. If you plan on setting up a business in India, then a partnership is a medium that can help you in the long run.
These partnerships give the members of an organization a crystal-clear view as to what the goals are. Make sure to perform a thorough background check on potential partners, weigh the pros and cons of your options, and also formulate an undeniable proposal. Once you have chosen your business partner, you need to make solid strategic partnership agreements. Get detailed reports, information, verification details, services to be offered, terms and conditions, signatures, etc.
We have curated a list of the 5 types of partnership agreements you can opt for your business:
1.Strategic Integration Partnerships
These kind of partnerships typically are created between the companies that provide services that can be accumulated together to provide a greater user experience. Look at Ola and Spotify for example. Individuals who take an Ola cab are also given the luxury to use Spotify and enjoy quality music while on the move. One brand is complementing the other while offering their own personalized services.
Hardware and software businesses are the ideal candidates for such kind of partnerships. You can even consider the relation between Oyo rooms and private guest hotels/houses.
2. Strategic Financial Partnerships
These partnerships are fruitful for organizations that are looking to hand their financial responsibilities to another party. Several businesses solely provide financial consulting, management, and other services. One party gets to lay emphasis on matters of core importance to their business, whereas one can contribute via their expertise in finances. The former can focus on growing and expanding, whereas the latter can generate income through managing the former’s financial tasks.
Finances are critical to all businesses. These partnerships will educate companies on fostering valuable long-term relationships and working towards the collective benefit of the agreed-upon deal.
3. Strategic Marketing Partnerships
If you plan on starting a business in India then marketing partnerships with a proven and relevant strategy can make the world of a difference. Especially if you are in the manufacturing, automobile, or delivery business.
Basically, the companies responsible for manufacturing goods will focus on creating higher quality products. On the other hand, companies that specialize solely in delivery will offer these manufacturers top-notch delivery services. These delivery agents are also capable of marketing the products on their platforms. Consequently, one business complements the other.
While the manufacturers receive a stream of consistent marketing and tap into diverse markets, the delivery company also earns a fair share from the deal. Many shopping e-commerce websites like Myntra that tie-up with delivery services are classic examples of strategic marketing partnerships.
4. Strategic Technology Partnerships
Technology is a business domain that can be exploited if the participants within this industry are open to partnerships. Think about what can a bill management software do if partnered with a web development and accounting agency. One can provide top-notch billing management services, one can promote these services to relevant website-related clients who can simplify their accounting tasks. On top of this, accounting agencies can offer detailed management along with report generation and real-time consulting.
Each of the parties can offer discounted prices for clients who travel through this strategically created business funnel. The benefits of partnering with technology startups and giants will be evident in the future. Remember, quality business is always when you tap into your audience’s behavioral pattern at least 5 years down the line. Predicting their needs is the real essence of a successful technology business.
5. Strategic Supply Chain Partnerships
The only issue that businesses face in supply chain partnerships is the ability to assure product quality before reaching customers. Are you wondering why this problem arises? Due to an untested and unreliable supply chain.
A supply chain partnership, in short, can be established when one manufacturer of parts can create something that other manufacturers need to complete their product. For example – tire manufacturers complement automobile manufacturers just like farmers complement vegetable vendors.
The benefits of these partnerships lie in the fact that one company in the supply chain gets a chance to positively influence its brand image via the other’s production pipelines.
Partnerships are the way to go when involved in business. Identifying the most valuable partnerships requires long-term vision and the ability to perform insightful market research. In this progressive world, partnerships are the driving medium for individual organizations to increase their reach and move one step close to achieving their goals. Especially in a developing country like India, collaboration is key.