Looking beyond what you know and diversifying into a new product area or region can be daunting. Finding business partners to aid you on this journey could mean the difference between success and failure.
In such a complex and cutthroat market, businesses need to understand the power a collaboration can provide. When expanding into new markets and product areas, the strength of shared wisdom and resources cannot be underestimated. Holding on to the competitive advantages your business fought hard to win is getting more difficult as new competitors jostle for position from every direction.
Collaborate to thrive
Finding business partners to collaborate with has never been more important. Entering into a new overseas market is hard and time-consuming, and the right partnership opportunity can help alleviate those pressures.
In emerging markets, suppliers and partners might be pickier than you expect. They may have their own ambitions for joint ventures or reciprocal deals to distribute their own products. Selling the advantages of your own business to them may be just as important as doing your due diligence on them. In turn, the right local partners will offer a deep understanding and knowledge of their regional markets, their needs and what prices these markets can bear.
A US-based lighting company was looking to break into the Chinese high-end construction market, but dominance by distributors with a local presence made doing so near impossible. One of their Chinese suppliers was looking to expand their domestic sales in China, but lacked the experience or pedigree to deal directly with high-end designers, architects and construction companies. The two agreed to form a strategic partnership in China.
Now, the US company can deal with Chinese clients through its established local presence, while the Chinese supplier benefits from having a partner experienced in dealing with high-end clients, and a boost to its reputation by being associated with an American company. Both were able to diversify and establish a business in China by forming a mutually beneficial strategic partnership.
Leveraging from existing tools
Platforms like Powerlinx are empowering small and mid-sized players to act like big business by acting on opportunities and collaborating with like-minded businesses.
And while the competition will be fierce and the profits hard won, the good news is that for businesses prepared to deliver within this new way of doing business, the potential payoff is substantial.