Thursday, April 7, 2011

Strategic Alliance: Together Our Family Matters

Why everyone now days searching for a company to hang on?

Why they want to alliance with their similar nature and practiced company? 

What are the positive consequences after getting into a merger, joint venture or alliance? 

what are the long term plans after joining the hands with alliance partner?

 If you want to see some success stories then there are plenty of alliances tweeting on the competitive marketing league.

Here is a list of such alliances and the answer to the above questions.

Arcelor-Mittal, Regal plastics co and Delphi automotive co. Tata-Corus, Shell and Essar, Volvo and Gelly, IBM and Toshiba. Hero Honda. Canon and Hp, Ford and Abb, BP and Shlumberger.Vodafone Essar.etc. 
 While telling you something about the recent business alliances and their respective pros and cons. What they got after joining hands with these new business friends and if you enter into such an alliance then what you will get from the joint status is portrayed below.

At first you will be able to offer your customers a larger variety of products or services. It will facilitate you to spend less money as well as time to create/developing a brand new product to launch in the market.

As you’re merged with your alliance partner, it will give you the benefit of extra sales force. Ultimately it support with time saving activities like hiring new employees every time and training them etc.

You can see the increasing rates of advertising and promotional activities in the market, here your budget on these activities also increase with the market demand facilitation ,but you and you’re alliance partner can share the advertising and marketing costs right here.

Just imagine about a limited range of offers and a broad range of choices, which one is better and which one leads to closing a bulk sale. I think you can make a decision easily right now. 

Now you’re company would be able to offer your existing customers/clients with both back-end and up-sell products.it will ultimately resulting with increase in revenue and sales volume.

Here you both can share knowledge and technology, while doing the same project and work.Now you will enjoy the existing and new customers/clients of the new business brand alliance and of the target audience also with loyalty bonus.

Endorsement and credibility can be enjoyed with your alliance partners. This will give you a maximum number of potential customers. 

Alliance will gives you a large sales force as a back up,by which you can come up a new brand product and can expand the business easily.No need to wait for long back to settle it AND LAUNCH in the market.

Both of companies can enjoy the joint service centers. As well as you can experience and learn MANY advantageous way to facilitating customer’s with new way of customer service.

it will give you numbers of  new expertise people and strategist’s, which is undoubtedly give you competitive advantage and rapid growth.

Don’t you think, if a company genuinely wants to grow within the existing market or want to spread across globally, then a sure shot strategic alliance is almost required to accelerate its growth, both inside and outside. Externally, the approach can be expressed as, whether the strategic alliance is occurred for the following reasons:
 ·          
    To provide an extra mileage to the prime company scale

·       Helps in pooling expertise from the alliance company., 

·      License to break into the new markets.

·      You can reduce the cost by economic alliance benefits.

·  While minimizing and optimizing investment as per the requirement.

· Generally alliances facilitate business with competitive advantage, or sharing technology, high or low.

One of the famous quotes says 'if you can't beat 'them, join 'them', has a new and universal twist: 'join 'them and you can beat anybody. Really appreciable thought process. This is proved right here right now.