Home | Business News | Browse by Publication | C | Chartered Management Institute: Checklists: Marketing Strategy

Strategic partnering.

Article Excerpt
[check] This checklist describes the planning phases in partnering: the strategic decision to partner, structuring the strategic partnership, and selecting an appropriate partner. The principles apply equally to commercial partnerships as well as to public sector / private sector partnerships, for example, under the Private Finance Initiative (PFI).

The Internet and the growth of e-commerce is enabling closer collaboration between competitors, and the sharing of systems and commercially sensitive information.

Definition

Strategic partnering agreements allow organisations to take advantage together of market opportunities and respond to customer needs more efficiently and effectively than they could in isolation. Such agreements may be for defined periods of time, and may be non-exclusive.

"Collaboration is the process by which partners adopt a high level of purposeful cooperation to maintain a trading relationship over time. The relationship is bilateral; both parties have the power to shape its nature and future direction over time." (Spekman)

Partnering means:

* sharing risk with others and trusting them to act in joint best interests

* a strategic 'fit' between partners so that objectives match and action plans show synergy

* finding complementary skills, competences and resources in partners

* sharing information which may have been privileged or confidential.

Reasons for partnering

* Finding an outlet for excess manufacturing capacity.

* Gaining quicker, low risk access to new markets.

* Strengthening the technological base.

* economies of scale through high volume, low cost and mass distribution.

* Overcoming geographic, legal or trade barriers.

* Speeding up new product innovation and introduction....

View this article FREE - Now for a Limited Time, try Goliath Business News
Free for 3 Days!