How to grow? Three options:
- Build your growth through organic expansion, open new offices, hire new people…
- Buy your growth through acquisitions, find & purchase firms, integrate, absorb…
- Partner your way to growth by developing strategic alliances.
The partnership model is the wave of the future. It is faster, less capital intensive and potentially more beneficial in the short and long term. So why is it not the preferred model which is taking over the world of business?
The short answer is, it is. Strategic alliance partnerships are growing exponentially. The alliance profession is booming. The Chief Alliance Officer is becoming a recognized and respected player in the C-suite. Large corporations and small firms alike are employing alliance managers to work with their counterparts to go to market together.
Business partnerships are the fastest and most cost effective way to grow the business and expand your global footprint and augment your capabilities, while mitigating risk and complexity.
Alliances are a quick way to cover markets in new geographies or to add new capabilities. But the shared sales processes and the cultural issues take more time to develop. The value of the alliance, if properly managed, grows exponentially with time. Those strategic alliances and partnerships which are given time and proper governance are producing outstanding results around the world.
Build, buy or partner?
Each solution has its place, its benefits and shortcomings. Organic growth and acquisitions require major capital investments whereas strategic alliances provide less capital intensive options to grow your business. Partnering solutions are especially attractive when considering international expansion. Partnering solutions, in all forms and manners, are still nascent and will dominate corporate strategies in the years ahead.
Strategic alliances – creative collaborative solutions – provide a third path forward to growth and business success.