Great Prairie Group’s Growth Audit is a quick check on your plans and rationale for a strategic alliance. The audit asks critical questions to evaluate areas of strength and weakness as well as help your team improve the success of your alliance initiative. These questions include the following:
The specificity of your answers will help you determine the level of strength of the strategic rationale supporting your strategic alliance.
Capture business opportunities through collaboration.
Strategic alliances are termed “strategic” because they solve major strategic challenges where traditional strategies are less effective – all the more reason they are attractive and why they have risen worldwide.
With the globalization of markets and the imperative of technological innovation, companies find themselves needing to marshal new capabilities and doing so quickly. Leveraging partner firms allows companies to focus on their core competencies and access capabilities as needed – from research and development to manufacturing processes, from distribution to marketing and sales.
Examples of familiar business initiatives that rely on strategic partnerships include cloud computing, software and networking products for the Internet, airline code-sharing, joint pharmaceutical R&D, and logistical support in the supply chain among others to name a few.
The Challenge. As useful as strategic alliances have become, the reality is that establishing and operating an effective strategic alliance is a challenge to make it work. Strategic alliances have roughly a 50% rate of success.
Setting up a strategic alliance takes substantial effort and an even greater commitment to manage, as the company usually foregoes a degree of control over one or more functions and needs to collaborate with the partner on an ongoing basis. As a result, the required management challenge can be a tall order and a distraction away from the core business of the firm.
We assist clients in several aspects of strategic alliances, from strategy to execution.