Strategic Partnerships - Advantages & Disadvantages

The Right Strategic Partnership Means:

• Spreading risk and trusting others to act in joint best interests
• A fit between partners so objectives match and activities show synergy
• Identifying complementary skills, competencies and resources in partners
• Sharing confidential information

Advantages - Strategic Partnerships Can Help An Organization:

• Find an outlet for excess capacity
• Gain quick, low risk access to new markets
• Strengthen its technological base
• Achieve economies of scale through high volume, low cost and mass distribution
• Overcome geographic, legal and trade barriers
• Speed up innovation & new product introduction

Disadvantages - Unsuccessful Partnerships May Result In The Following:

• A lack of strategic fit
• An imbalance in the relationship between the partners
• Implementation problems because of differing leadership styles 
• A lack of trust and confidence
• Slow decision making
• Key requirements for a market project are concentrated in one of the partners

Questions to Ask Yourself Before Creating a Partnership 

1. What changes are effecting our markets?
2. How long will these changes last?
3. How fast can we adapt to these changes?
4. Is investment in our own resource levels the best answer?

 

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