Three important areas of money in which strategic alliances will develop are cost savings, financial stability, and purchasing parity.
Cost savings
Cost saving is an important area for most organizations. I do not assume that you only play the game of business from a defensive position, but do not spend money on money, it is important for any business to increase its net abundance.
In the manufacture of elements of your product or the entire product, which can be built in factories (owned by others or in a joint venture) using modern technologies, cost savings can be great. Sharing resources or outsourcing, rather than owning and operating a manufacturing enterprise, will allow you to reach a synergistic partnership agreement that will allow you to focus on core forces. This is the idea of Donnelly and their enterprises from Applied Films Laboratory, Inc. for the production and supply of the world market in glass with a display for liquid crystal displays (LCD).
Strategic alliances in the distribution world allow access to orders that can also be economically and efficiently produced, which gives a reasonable profit through cooperation.
Savings have been implemented in many organizations through common offices, such as Bank of America and many other banks throughout the country — these are branches in suburban and rural supermarkets. They save resources by simplifying the lives of their customers, reducing the number of their customers. daily work.
Wal-Mart has a partnership with Ronald McDonald. In many of their units across the country, proudly on display, there are signs in the front doors of the store, indicating that McDonald's inside and a full-size plastic Ronald that sits on the bench to greet customers. Shops in stores have become commonplace through alliance relationships.
Another common situation with co-location in different places of America - at the truck stops. It is now customary to visit a truck stop and choose from two or three national franchise fast food chains. It also successfully achieves cobranding there, increasing the attractiveness of a particular place.
Financial stability
It is especially important to deal with a bad economy or recession, when sales are flat and prices are deflated. Some time ago, Continental Airlines appealed to consumers in the optical industry, working with Swan Optical, Inc., an industrial supplier, to increase business through a program of discount air ticket certificates for customers of optical frames supplied by Swan Optical.
Access to capital is the main reason for small organizations developing alliances with larger ones. For example, Bruce Bendoff, general manager of Craftsman Custom Fabricators, Inc., Schiller Park, IL, a sheet metal bending company of 275 employees, learned how to grow through trust in the corporate giant, Motorola.
More potential profit, as a rule, is the publication of shared resources. Achieving economies of scale is also possible in an alliance relationship when partners exchange objects, equipment, and employees as described above.
In the strategic relationship of the alliance, the urgent payment for the agreed terms is increased, especially in the relationship between the alliance of customers and suppliers.
Alliance relationships allow partners to share financial risks associated with developing new products and entering new markets.
Buying parity with giants
In the distribution industries, cooperatives, unions, and marketing groups are well served by individual distributors. In this relationship, they can usually buy at prices much closer to 800 pounds of gorillas than they can by themselves. Today, most distribution industries have at least one of these organizations to help their members level the playing field.
Various joint organizations provide additional discounts and services for in-depth marketing and technical knowledge. The win / win price becomes more affordable in such a long-term relationship between the buyer and the seller.
To increase health and potential growth for your business, consider alliance relationships to improve cost savings, financial stability, and purchasing parity.
