In some circumstances, other options may work better than a business. For example, you could enter into a business partnership. You might even decide to merge your two companies entirely. This may seem intimidating at first glance, but it`s not too difficult to form alliances. (Think of it as networking with a purpose.) First, look for a common customer or audience. Once you have identified a company that matches the invoice, open the communication channels. Then answer the following questions for your potential partner: The ongoing campaign recently led to another jointly developed product called Trips, which allows Airbnb users to connect with hosts with common interests and book those experiences while traveling. This partnership is a striking example of how companies can connect their customers with information that matches their individual interests and thus boost product usage. Many strong interpersonal relationships help resolve small conflicts before they escalate.
«There really isn`t a good system for solving problems except through personal relationships,» observes a European manager who has experience in transatlantic relations. «If you don`t build a good relationship with your colleagues, you don`t have a prayer for it to work. Formal decision-making structures don`t do anything for you unless you have the relationship you can start with. «Companies with strong communication between functions and widespread information tend to have more productive external relationships. Other desirable internal changes therefore include stronger cross-functional teamwork and the exchange of ideas. At BhS, cross-functional teamwork is key to achieving the speed, innovation and quality that the company expects from supplier partnerships. Liz Broughan had to build bridges with marketing director Helena Packshaw and retail manager Sandee Springer. Another thing to keep in mind is that strategic partnerships can also mitigate risks.
This means, for example, that if you choose a strategic manufacturing partner who operates a plant and insures its employees, you are exempt from the responsibility of operating a similar plant yourself. Once you`ve found a strategic partner to work with, you`ll need to create and sign a strategic partnership proposal or agreement with them. This type of document can be relatively simple to extremely complex, depending on the scope of the partnership, the terms of the agreement and the size of the companies involved. While GoPro and Red Bull collaborated on many events and projects, perhaps the biggest cascade of collaboration they did was «Stratos,» in which Felix Baumgartner jumped from a space capsule more than 24 miles above the Earth`s surface with a GoPro on his person. Baumgartner not only set three world records that day, but also embodied the value of reshaping the human potential that defines both GoPro and Red Bull. One possibility is to accept limited and specific cooperation with another company. For example, a small business with an exciting new product may want to sell it through a larger company`s distribution network. The two partners could agree on a contract that sets out the terms and conditions of its operation. For example, Uber and Spotify have teamed up to create their «Soundtrack for Your Ride» campaign. In this company, each brand has relied on the other`s technology to create an exceptional experience for customers.
While waiting for their Uber ride, passengers can log into their Spotify account and control the playlist they will listen to during their trip. Importance. The relationship is part of the partners` key strategic objectives, so they want to make it work. Partners have long-term goals where the relationship plays a key role. In value creation partnerships, companies with different skills come together to create value for customers. There are many ways for companies to work together to achieve their common goals. However, companies should carefully consider the options available to them and choose the type of collaboration that best serves their interests. 1. Self-analysis. Relationships start well when partners know themselves and their industry, when they have assessed changing industry conditions and decided to seek an alliance.
It is also helpful for leaders to have experience in evaluating potential partners. You will not be easily dazzled by the first beautiful view that comes. The romance of courtship quickly gives way to everyday reality as partners begin to live together. Joint ventures are also new businesses and are therefore full of uncertainties and unforeseen obstacles. Now, more than senior management needs to work together to make the partnership a success. Relationships with suppliers or suppliers are also important places to cultivate alliances. For example, Long Beach personal trainer Clint Bigham of We Fit Gym accidentally formed an alliance with one of its suppliers, TurboSonic machines. Since Clint couldn`t afford to buy TurboSonic`s full range of training equipment, he asked the manufacturer if it could serve as a test facility for their products. Now, when a customer in Southern California calls TurboSonic to try out the device, the company sends it to Clint`s gym. Clint meets new potential customers, while TurboSonic can showcase its products without having to open a showroom. In addition, some of Clint`s current customers have purchased a TurboSonic machine for their personal use due to its continued use in the gym.
2. Tactical integration that brings together middle managers or professionals to develop plans for specific projects or joint activities, identify organizational or systemic changes that better connect companies or impart knowledge. Second, vows should include a commitment to expand the relationship through secondary bets such as stock exchanges or personnel exchanges. Such a commitment reflects a desire to connect the destinies of companies, as in the European Retail Alliance, founded in 1989 by three major food retailers: Ahold in the Netherlands, Argyll in the United Kingdom and Casino Group in France. Collaboration with the ERA provides partners with cost-effective opportunities for economies of scale and innovation. To solidify the relationship, the partners bought modest amounts of each other`s shares. ERA`s three partners sell products to each other and work together on joint projects in the areas of insurance, data processing, equipment purchasing, quality assurance and personnel development. They have also developed a marketing association with 11 Swiss-based companies, which works closely with manufacturers on product development. All operational differences must be resolved. More communication than expected is needed, and different languages make things even more difficult.
In a Franco-American joint venture, the meetings were held in both languages and therefore lasted twice as long. Differences between companies don`t disappear because of an alliance, but they can be managed in a way that doesn`t put them at risk. Companies that are good at partnerships take the time to learn about differences at an early stage and take them into account in the development of events. Your business, your partner`s business, and your markets change over time. A joint venture can adapt to new circumstances, but sooner or later, most partnership agreements end. Of course, if your joint venture was created to manage a particular project, it will end when the project is completed. 4. Interpersonal integration, which is a necessary basis for the creation of future values. As relationships mature beyond the early days of trying to create initial projects and build structural scaffolding to manage them, the network of interpersonal relationships between members of each company grows in size and density. .