Strategic Alliance Support

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.

However, 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.

Our Approach

Our approach to strategic alliances provides the fact base and analysis for management to make confident decisions about partnering, structuring, valuing, negotiating, and managing the alliance. Our approach takes into account the critical success factors that recur over time and consistently feature on both sides or across all partners of successful alliances, including the following dimensions:

  • Financial
  • Strategic
  • Structural
  • Operational
  • Cultural

All of these dimensions are intrinsic to all strategic alliances. However, their importance varies as a function of the business sector, the alliance’s objective, size, and life cycle stage.

How We Help

Raise the performance of business-to-business collaboration.

Alliance
Development
Partner Assessment
Valuation
Negotiation Support
Governance Design
Performance Assessment
  • Integrated Solution
    Providers
  • Cloud Computing
    Platforms
  • Advanced Transformational
    Outsourcing Partners
  • Co-production
  • Multiple integrated producers
  • Integrated MRO services
  • Joint Researchers
  • Joint Developers
  • Co-producers
  • Bi-lateral Technology Users
  • Integrated supplier /
    producer
  • Co-producers
  • Auxiliary Support
    Systems
  • Marketing, Sales,
    Service Partners
  • Authorized
    Service Centers
  • Cooperatives
  • Exchanges
  • Supplier Networks
  • Exclusive Clients
  • Marketing
  • Sales
  • Technology and development
  • Value added reseller partners
  • Distribution consortia
  • Shared service distributors
  • Integrators
  • Aggregators
  • Platforms
  • Niche Networks
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Alliance Development

We help companies examine the strategic rationale for the alliance. We evaluate the market attractiveness and the financial merit of the alliance opportunity ... learn more

Alliance Development

Examination of the rationale for a strategic alliance, including objectives, alignment, resources, capabilities, and strategic fit with the company’s strategy. Evaluation of the market attractiveness and the financial merit of the opportunity and assessment of the firm’s ability to capitalize on it. Determination of the strategic direction for the alliance to establish a defensible market position. Critical items of analysis include the following:

  • Strategic alignment (shared vision, shared objectives)
  • Scope of the relationship, type of alliance
  • Business case
  • Joint value proposition
  • Investment cost, operating cost
  • Determination of risk and risk sharing
  • Valuation
  • Reward system
  • Determination of exit strategy
  • Partner assessment
  • Governance structure
  • Determination of performance metrics
  • Negotiation process
  • Joint business planning
  • Communication planning
  • Quality review process
  • Transition
© 2022 Great Prairie Group
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Partner Assessment

We help management create a preliminary partner list, identify key partner criteria, screen the number of candidates down to a short list ... learn more

Partner Assessment

Determination of the most appropriate partner fit based on the alliance strategy. Analysis includes creation of an initial partner list, identification of partner criteria, screening to a preferred short partner list, preliminary interviews, a prioritized list of partners, and convergence to partner selection.

Critical items for review include the following:

  • Partner company market position
  • Market fit of proposed alliance
  • Product fit with partner’s offerings
  • Established mutual needs for partnership
  • Partner company size
  • Partner company financial position
© 2022 Great Prairie Group
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Valuation

With the strategic alliance in focus, we conduct valuations in two ways, bottom-up valuation based on the value drivers of ... learn more

Valuation

With the strategic alliance in focus, we conduct valuations in two ways:

1. Bottom-up valuation based on the value drivers of the strategic alliance. This method requires a deep understanding of the profit model, including

  • Revenue projections
  • Cost structure
  • Asset structure
  • Capital investments
  • Cash flow
  • Strategic risk
  • Discount rate

2. Option valuation for a strategic alliance in exploration mode, where traditional valuation might be difficult to use as it cannot easily accommodate the “what if” dimension of such a situation.

© 2022 Great Prairie Group
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Negotiation Support

We support clients in identifying the type of alliance, targeting the alliance-specific critical success factors, measuring the expected cost/value ratio ... learn more

Negotiation Support

Our support includes identifying the type of alliance, targeting the critical success factors specific to the type of alliance, measuring the expected cost/value ratio for the alliance.

  • Process for negotiation
  • Alliance business value
  • Mutual investment
  • Expected cost/value ratio
  • Alliance reward system
  • Risk
  • Optimum business/legal structure
  • Shared control
  • Equity participation
  • Exit strategy
© 2022 Great Prairie Group
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Governance Design

We guide clients in developing the relationship vision, the joint go-to-market model, the governance structure, a balanced set of performance metrics ... learn more

Governance Design

Ensuring and guiding the structure and core process for operating the alliance, including the following items:

  • Definition of alliance scope and objectives
  • Joint go-to-market model
  • Alliance organizational design
  • Definition of roles and responsibilities
  • Information flow
  • Performance evaluation process
  • Operating metrics
  • Partner accountability
  • Process for joint problem solving
© 2022 Great Prairie Group
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Performance Assessment

We support companies in assessing the individual alliance relationship, characteristics, critical success factors, and operating principles ... learn more

Performance Assessment

Assessment of the individual alliance relationship, characteristics, critical success factors and operating principles. Evaluation of what is going well, what is going badly, and what the company would have to do to improve. Items of review include the following:

  • Operational KPI measurements
  • Alliance processes
  • Joint decision making
  • Collaborative skill level
  • Senior executive support
  • Speed of progress
  • Market performance
  • Financial performance
© 2022 Great Prairie Group

The Results You Can Expect

  • FACT-BASED VALIDATION OF THE STRATEGIC RATIONALE
  • ASSESSMENT OF ALLIANCE VALUE
  • PURSUIT OF RELEVANT STRATEGIC PARTNERS
  • STRUCTURED AGREEMENT
  • CONTROL OF ALLIANCE PERFORMANCE

How We Have Helped Clients

Strategic alliance with telecom partner companies.

For a Wide Area Network service provider, designed and executed a global channel alliance strategy with multiple telecom partners to penetrate the worldwide market and drove revenue 5X in two years.

Strategic alliance with ecosystem platform firms.

For a CAD/CAE/CAM software provider, designed strategic alliances with anchor automotive and aerospace companies and technology partners to deliver services in the cloud.

Strategic alliance with mobile phone OEMs.

For a cybersecurity MNC, designed and executed a global channel alliance strategy with mobile phone OEMs to access the mobile security software market and drove revenue 4X in two years.

Strategic alliance with Managed Service Providers.

For a multi-cloud connectivity network & service provider, designed a global channel alliance strategy with telecom partners and managed service providers to expand in the worldwide market.

R&D strategic alliance with microchip technology firms.

Redesigned an existing strategic alliance between a microchip fabricator and a computer manufacturer for effective joint chip development.

Strategic alliance between launch vehicle manufacturers.

For a launch vehicle manufacturer, designed an alliance strategy with a direct competitor to start rationalizing over-capacity together.