Strategic partnerships offer numerous benefits for your business, as well as the business(es) you choose to partner with. Together, complementary, non-competitive companies can help each other in ways that neither of them could have likely accomplished on their own. So what are some of the benefits of forming such a strategic partnership? Let’s take a closer look:
You Can Tap Into New Markets
Strategic partnerships allow you to tap into markets that you may otherwise have not considered, known about, or even tried to crack yourself but just couldn’t get the response you were hoping for.
Your partnership aligns you with another brand that has established itself well in that space, and as is often the case, their clout and presence in that market will reflect well on you, giving both of you new advantages in markets that need what you have to offer, but also have a foundation upon which to build a business relationship with you.
You Can Reach New Customers
In addition to allowing you to establish a recognizable presence in new markets, a strategic partnership done at an opportune time, allows you to reach new customers. These customers may have heard of your brand, or this may be the first time they’ve ever had the experience of knowing who you are, but your alignment with the more well-known or well-established company in that sphere already gives you a leg up over those who are still trying to wriggle into that market and find their place.
You Grow Your Brand Awareness
Although you’re allied with another company in this partnership, your company also gains the benefit of added brand awareness. People come to associate your brands with each other, not in a merger-type way, but more as a complementary way.
For example, McDonald’s only serves Coca-Cola products because of a strategic partnership between the two. No one believes that Coca-Cola is going to go into the fast food franchising business, nor is McDonald’s going to come up with a line of icy cold soft drinks any time soon.
This kind of strategic partnership allows both companies to concentrate on what they’re best at, without looking at their strategic partner as a competitor. Both companies gain from the partnership and are able to do more business working together than separately in their own “brand silos”(no matter how well-known or big those silos may be!)
Customers Enjoy Added Value from Their Purchase
Going back to our McDonalds example, it’s rare that a customer will order a burger and fries, but not a soft drink with their meal. Partnerships like this add more than just vague “value”. They add convenience, savings, entertainment, or other benefits to the consumer, and when the consumer has a good experience, again and again, they remember it and look to repeat it.
Strategic Partnerships Build Trust in Both Companies
Finally, one of the biggest unseen advantages of strategic partnerships is that over time, they help build trust in both companies. Such partnerships help create a strong foundation as they branch out into new markets as well as solidify their hold in existing markets.
But identifying whether or not a partnership would be beneficial to both companies can be difficult. How do you find complementary products or services that aren’t competitive? How can you be sure the mission statement and philosophy of the business you’re looking to partner with aligns with yours? Finding companies worth forming strategic partnerships with can be a challenge, but these unicorns do exist!
Fortunately, help is here! At Workdom, we’re always looking for companies that would be the perfect strategic fit for each other. We can help you grow your business by finding like-minded, forward-thinking companies who complement what you have to offer without being competitive so that you can both grow and expand your respective visions together.
Contact us today to learn more about what opportunistic partnerships might await you and how to get started with the right kind of outreach that generates the responses you’re looking for. Our senior advertising executives are standing by and ready to help as we work together to navigate the new normal and help ensure that the bonds of business remain strong and firm in any situation.