A business partnership may be one of the paths you have considered to help grow your business or answer your current business needs.
You want to work with businesses that provide complementary services – e.g., companies who interact with the same type of customer, but who do not offer the same services or products as you do.
In the globalizing economy, partnerships help businesses present in new markets, provide cost-effective services anywhere, use pooled resources, diversify solutions, and more.
Below find the top benefits businesses aim to derive from new partnerships.
Increased market share and market access are the leading reasons businesses seek new partnerships, with 68 percent of executives listing acquiring new customers as the main benefit of effective alliances.
Sixty-six percent of senior executives view increased revenue as a primary advantage of successful partnerships. When their strategic objectives align and their resources complement each other, business partners can provide new market access and, in turn, new revenue streams.
Expanding distribution is among the top three benefits sought by businesses entering into partnerships, with 32 percent of executives naming expanding geographic reach as a primary goal of their collaborations. Tightly linked to accessing new customers and revenue channels, geographic expansion is often the first step toward further growth.
Partnerships are often an ideal way to access new technologies without expending resources. Just over a quarter, or 26 percent, of business leaders, list gaining access to new technology or intellectual property to benefit strategic partnerships.
Along the same lines of accessing new technologies and IP, businesses also enter strategic partnerships to pool resources. Twenty-three percent of executives cite adding sharing resources as a primary objective of partnerships, effectively advancing them on their path to innovation.