Partnerships are a major growth tactic for businesses of all sizes, but 45 percent of senior executives struggle to keep what partnerships they have active and mutually rewarding. How is it that partnerships that were so carefully planned in the beginning often fall by the wayside after some time? Contrary to popular belief, too much attention to developing “smart” goals is often the culprit.
2014 saw a shift in the way businesses around the world experience growth. Namely partnerships and alliances are leading businesses, both SMBs and enterprise alike, to expand cross-border, shorten their supply chains, strengthen their local economies and more. Industries like technology, education, healthcare and more have all benefitted and innovated through alliances between businesses – and in some cases, even between competitors.
Buyer-seller relations can take on many forms, but it’s when they evolve into partnerships that they allow for the leanest supply chains and the highest profits. Such alliances, called channel partnerships, allow buyers and sellers to work together to find distributors and add the most value to their supply chain.
In today’s globalizing economy, demand for low prices has moved many corporations to seek out the lowest bidder for production. Offshore factories and global supply chains have become commonplace, even expected. But as economies around the world begin to bounce back from the recession and advancing technologies allow businesses to operate smarter, the offshoring trend seems to be losing its grip.
Strategic partnerships are vital to business growth – 85 percent of business executives agree. While partnerships are traditionally thought of as alliances between businesses with complementary, but not identical, services, partnerships between industry competitors can be just as effective.