Building strategic alliances for business growth
The word “strategic” might have been used many a times in different areas of life but its importance is way more immense and huge as compared to its use. The competitive environment all over in business world has compelled firms to indulge in the strategic alliance. It’s BforB. Building strategic relationships for business is as important as water is to a plant. Strategic alliance helps firms in gaining more with their limited resources.
Strategic alliance can involve both, alliance as whole and the alliance for some resources. The strategic alliances have helped firms to sustain themselves in the business world. There can be a situation in which a firm needs some resources and the constraints involved can make it impossible for the firm to access those resources. Strategic alliance with some other firm to access those resources is the only solution to this problem.
Importance of trust: Strategic alliances can be both, useful or disastrous. The basis for a strong alliance depends on the trust between the firms involved. If any of the partner involved has concerns in the alliance, then the whole alliance can become a flop. This trust can be formed by a proper communication between the firms. Stating the mutual goals and all the shared resources before the alliance can help in gaining the trust of each other. In a nutshell, proper communication between the parties involved helps in building a rock solid trust.
Advantages of a good alliance: A good alliance can help the companies to boost up their profits and revenue. Here are some of the advantages involved and their explanation:
Mutual resources: Development of a strategic alliance between two firms enables them to share their resources. Due to the increased resources, both the partners can achieve their goals much more efficiently and swiftly. This sharing of resources also helps in the growth of employees of both the companies involved.
Growth opportunities: The strategic alliance helps in widening the circle of opportunities for the firms involved. The business networking of one firm can be helpful for the other firm which can create more opportunities. More opportunities result in more chances of success.
Increased scale of production: The increment in the scale of production is one of the main objectives of a strategic alliance. Production scales increase significantly when two companies work together for the goals of each other.
More Customers: When two companies share their resources, they tend to have, almost, the similar objectives. The homogeneity between the companies results in more customers for both the partners involved.
Knowledge sharing:The knowledge in different aspects of businesses can be shared among the firms when they are mutually involved for their growths. More knowledge makes them stronger and more experienced as compared to other competitors in the market.
The strategic alliances between the companies like paramount pictures and 20th century fox resulted in one of the greatest movies of all times “Titanic”. Other alliances like the one between AT&T and MCI have also proved its worth.
Small business in populous cities like Gold Coast or Queensland can gain a lot if they jump into the strategic alliances with other local businesses. Almost all the men and women succeeding in business have classified strategic alliance as success.
Fresh HR Insights is no exception to this rule and have build many strategic Alliance’s over the last 4 years that we have been in Business. We thank each and every business who we have grown and developed with and have below listed some of our HERO’s in business.
Networking with Janet
Arrow Focus on Wealth
BforB Gold Coast North
Mortgage Choice Helensvale