Strategic alliance in business plan

Strategic alliances are an effective way for a business to build a secondary market or to test a collaborative partnership with another company. Finding the right ally requires finding a company that shares a common vision and mission, or that otherwise buys into your company's core values. Look at how large corporations have successfully developed strategic alliances to brainstorm how to develop your own.

Strategic alliance in business plan

Enter your email to reset your password Or sign up using: Too often, companies enter into business with the wrong partner or for the wrong reasons, and they end up regretting the decision. Even when an alliance looks great on paper, cultural differences between the parties or mismatched expectations can undermine the arrangement.

Small Business Notes: How to Set Up a Strategic Alliance

The following pages will introduce you to strategies for establishing a successful alliance. Selecting a Partner Any company that has something you need -- clients, technology, capabilities -- is a potential partner, provided you have something it needs as well.

For an alliance to succeed, both companies must benefit from it. But recognize that alliances rarely come without costs. At the very least, they require an investment of time that you or your key people could be spending on profitable endeavors.

So it pays to be very selective about whom you team up with. A business alliance needs to be unusually profitable -- any new business generated by the alliance should beat your current margins in order to justify the effort, says Slowinski.

Try to project whether your would-be partner will still be a net benefit at that point.

Executive Summary

Your counterpart should do the same: A prospective partner ought to be as careful as you are, or you should wonder about its commitment to the relationship. Cutting a Deal In many respects, the most important moment of the alliance dance is the first, when you and an executive from your prospective partner usually the head of the company or key business unit sit down to discuss the opportunity at hand.

This is your chance both to lay the foundation for a productive relationship and to uncover potential hazards. Lynch says executives should first assess whether their strategies over the next three to five years are aligned.

Otherwise, Lynch says, "no contract will ever hold them together. Establish subjects and a timetable for the talks. You and your counterpart should next set an agenda for formal negotiations and agree broadly on the elements of a potential partnership.

These should include the scope of the partnership; goals, roles, and obligations for each side; milestones and other operating details; rules for intellectual property which can often be a sticking point -- see " How to Share Ideas ," ; and financial arrangements. At the same time, outline a rough schedule for these negotiations to follow.

Make sure everybody buys in.


A key manager who is not on board for planning the alliance can sink it when the time comes for implementation. The managers who will have day-to-day responsibility for executing the partnership should lead the talks, says Sagal.

Of course, after several weeks, say, the executives should review the progress to see if an agreement is feasible. Having a lawyer at negotiations will make it easier to incorporate the business intent into the contract language see " Put It in Writing ,".

Making It Work New allies often find it difficult to actually work together, not least because of the differences in corporate cultures. The key conflict usually revolves around how decisions are made, says Slowinski, especially with companies of different sizes.

Plan the decision-making process. As early as possible, you and your counterpart should discuss the first major decisions on the horizon and how each company would normally make them -- the key people, the reporting lines and committees that will have to sign off -- and how long the process should take.

Determine if each side can live with the decision structures in place.PUNE: Persistent Systems and OutSystems, provider of platform for low-code rapid application development, have strengthened their strategic alliance to make it easier for customers to launch products and service lines, transform customer experience, and automate business processes.

NCD ALLIANCE STRATEGIC PLAN 5 Our track record NCD Alliance is uniquely placed to drive the NCD agenda forward. We are a recognised global business and demand multisectoral action, NCD Alliance has proven that transparency, inclusiveness and innovative partnerships are both possible and powerful for NCDs.

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strategic alliance in business plan

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The Strategic Alliance Project looks at community, regulatory and political issues affecting Pacific Gas and Electric Company's low-income customers, and works with community-based organizations to determine how these customers can get the most out of our programs. A strategic alliance can also help a business expand into new markets. Although so much can be done virtually today using web conferencing, email, and other technologies to communicate with prospects located across the country or across the world, some businesses require a higher touch. What to Consider When Forming a Strategic Alliance. By: a business owner risks the potential partner for an endorsement in return for putting the partner's logo on the company's Web site. That's not strategic. finding the right business partner for the business you already have or a new business you plan to start, might not be as simple.

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Markam Driving School is an established driver instruction business/5(21). It can help managers choose corporate partners that will advance their organization’s long-term strategic plan.

And it can help reveal opportunities in which an alliance may be used as a low. The FY – FY strategic plan is the work product and Business Affairs University of Texas System 1. significant and strategic benefit to the Alliance. SUCCESS MEASURES • Phase One: Recommend possible revisions to the Alliance Affiliate program to the OC by Q2, FY , for.

Beyond the Promise: Four Steps to Making Strategic Alliances Work by Pamela Harper