Strategic Partnerships: Definition, Types and Benefits

Strategic partnerships are not new. Companies have worked together for decades. Businesses like Starbucks, Google, Spotify, Uber, McDonald’s, and Coca-Cola have teamed up to mutually benefit. Although these companies might not appear to share much, the best strategic partnerships create new ways to reach new markets and expand existing audiences. Combining forces can help you build brand awareness and secure profitable futures for both companies.

What are strategic partnerships?

Strategic partnerships are collaborations between two or more entities that pool resources technology, resources, and financial success. Non-competing businesses often choose to collaborate to reduce risks, such as the need to expand marketing efforts into unfamiliar territories. This can be costly and not always successful. Working with a strategic partner to market your business is a great way to increase its ROI. This allows you to rapidly expand your customer base at a very low cost.

Sometimes, a strategic partnership is also known as co-branding. This allows businesses to exchange information, services, and other resources that they might not otherwise have. This allows each business to grow at lower costs.

Types of strategic partnerships.

There are six types of strategic partnerships.

1. Integration partnership: This type enables customers to integrate separate operations or services in order to make their lives easier. Sales-as-a-service companies often create integration partnerships that allow them to connect with other services. One of the top email marketing services might partner with multiple content management system vendors to allow customers to seamlessly connect, modify, or move data between programs.
2. Technology partnership: This arrangement allows one company to employ another to help provide technology services. This could be as simple as two companies working together in one office to split the cost of a costly piece of equipment such as a large-format printer.
3. Financial partnership: A common partnership involves a business working together with an accounting or financial company to add value to their organization through the review of data. The partner financial company usually audits the business and completes a market analysis. They then generate a forecast and insight to assist the business’s leaders in making decisions.
4. Marketing partnership: This partnership, which is very common, can simply be two businesses marketing their products or services together to increase their reach. Marketing partnerships that work in similar areas are the best. For example, a local general contractor works with an interior designer.
5. Supply partnership: This partnership is where a manufacturer partners with a vendor in order to stock their shelves. An electronics store might partner with an audio manufacturer in order to sell headphones only. An example of this is an office that only works with one manufacturer to stock cleaning products.
6. Supply chain partnership: This arrangement is common among larger companies and involves multiple companies working together in order to create a product. A company selling televisions might work with multiple businesses to make their product. One company may develop the screen, while another company produces the electronic components, and the third is the housing.

What are the benefits of strategic partnerships?

Strategic partnerships are, as the above definitions indicate, essentially symbiotic relationships. Every partner can benefit from working together, be it by sharing resources or decreasing costs. We’ll be looking at some of the more tangible benefits below.

1. Access to new customers

Expanding your reach is one of the most crucial aspects of growing a business. Strategic partnerships can open up new opportunities for advertising and access to customers. You may be able to reach clients of another business by partnering with you. This is a great way to market your business.

You can double your clientele by expanding your reach.

Originally Published on The Tech Trend