Listen To My Welcome Message!
When working with Jody, she offers much more than exceptional technical capabilities, knowledge and experience. It is also her spirit and passion for life that creates the kinds of relationships with her customers that stands Jody over her peers.
Brett Manlove
Vice President Sales and Marketing
CanWest MediaWorks
Toronto, Canada

Strategic Alliances: Make Them Work

The simplest definition of a strategic alliance is: the joining of forces and resources, for a specified or indefinite period, to achieve a common objective. Partners can share resources such as products, distribution channels, services, customer lists, knowledge and expertise.

In terms of marketing, strategic alliances offer several advantages:

  • expand their email/customer email lists
  • provide more and different products and services to their clients
  • split expenses (if any)
  • lo-cost way to expand the reach, awareness and credibility of your company
  • increase your professional contacts, knowledge and experience

To make sure the strategic partnership works to everyone's benefit, below are some questions to consider as you go through the different stages of setting up and operating a strategic alliance.

Develop/outline strategy

  • feasibility:
    • Are there companies out there that would be a good fit?
    • Is your company in a position to be able to offer something to a partner?
  • objectives:
    • What outcomes do you want to achieve with the alliance?
    • How does a strategic alliance move you closer to your company and marketing goals?
  • issues:
    • Are there any potential problems with partnering, in general, or with a specific company?
    • Does your company have the resources to successfully create and carry out an alliance?

Partner assessment

  • reputation: 
    • How great is your potential partner's reputation?
    • Do they have credibility, offer value, have good client relations and customer support, and so on?
  • business model: 
    • Does the prospective partner have compatible business goals, philosophies, ethics and values with your company?
    • Do they have similar goals and objectives of the strategic alliance?
  • customer base:
    • Would their customer base be interested in your product or service, and vice-versa? 
    • Do each of your customer/prospect lists enhance and build on each other?
  • resources:
    • Are there any resource capability gaps that need to be addressed?
    • Are they in a position to successfully run a strategic alliance with you?
  • price point:
    • Are your prices compatible with each other?
    • How will the prices set by the alliance be viewed by each company's respective customers positively?

Contract negotiations

  • Are each partner's contributions, commitments and rewards clearly outlined?
  • Is any proprietary information protected?
  • Are the termination clauses and penalties for poor performance stated and agreed upon?

Operations

  • How are you measuring and rewarding the alliance performance of each partner?
  • How are you evaluating the effectiveness of the alliance and the meeting of each partner's stated objectives?
  • How are you allocating and tracking resources devoted to the alliance?
  • What mechanisms are in place for adjusting priorities, resources, direction as required?

Strategic partnerships can move your company up to the next level of profitability and success, or waste your time, money and resources. By being as thorough as possible, you can work to ensure that your company reaps all the numerous rewards afforded by strategic alliances.

© Copyright 2008 Jody Gabourie

Want to get helpful articles like this one delivered to your inbox every week?   Subscribe to The Find and Keep Your Most Profitable Clients Ezine and you will! Click here for your free subscription today

ABOUT THE AUTHOR

Jody Gabourie, The Small Business Marketing Coach, delivers simple, innovative and powerful marketing strategies to help business owners find and keep their most profitable clients. To learn more about how she can help you take your business to the next level, and to sign up for her FREE special report, ezine and articles, visit her site at http://www.JodyGabourieMarketingCoach.com

NOTE: You're welcome to "reprint" this article as long as you make no changes and you include the "About the Author" information at the end.  Please let me know if and where you use this article by emailing me.

Return to Free Articles page.