Although usually not counted in a company’s revenue, building global partnerships and alliances is a valuable corporate asset. Especially when your company wants to expand its business into international markets.

Building global partnerships and alliances is certainly not something that can be done carelessly. There is more than just the need to partner with each other and make a profit.

Here are 3 important things you should know when building global partnerships and alliances!

The Importance of Building Global Partnerships and Alliances

Apart from being oriented towards higher profits, there are several other points that make building global partnerships and alliances important.

1. Business Sustainability

Building global partnerships and alliances is crucial for the sustainable development of businesses. However, it is imperative to go beyond mere participation. 

Global partnerships and alliances should prioritize collaborating with individuals and organizations that share similar values and objectives. This collaboration should foster a sense of community among like-minded individuals who envision a brighter future. 

Moreover, it is essential for these partnerships to demonstrate a strong commitment to enhancing accessibility to the causes they deeply care about.

2. Data, Technology and Decision Making

The more partnerships and alliances you get, the more information and data you will get.  

Through the development of data and technology, you will be able to map out problems and markets that match your business goals. Until finally you can formulate appropriate solutions to keep your business running and sustainable.

3. Business Innovation 

Through the right way of building global partnerships and alliances, you will meet organizations that share the same vision and mission as your business as well as the data and technology needed.

Through the above 2 formulas, you will be able to do many business innovations with less effort and greater impact.

How to Choose and Build Global Partnerships and Alliances

There are actually many ways to build global partnerships and alliances. But here we will explain 3 steps in building global partnerships and alliances based on Sahil Gupta. Here is the explanation!

1. Partner Acquisition

In the initial phase of partnership development, the primary objective is to acquire partners who are suitable and secure for the business. This involves a thorough process of identifying and selecting the appropriate partners.

Some aspects you need to take notice of are the partner’s clear value proposition, aligning strategic objectives, assessing their profile diligently and then relation-building. 

2. Partner Enablement

After partners have been successfully onboarded, the attention naturally turns towards partner enablement. This crucial stage entails equipping partners with the essential resources, knowledge, and support required to foster mutual success.

3. Partner Success

To attain mutual success and ensure continuous growth, it is imperative for partner teams to cultivate a thriving ecosystem that fosters the growth of partners.

Several initiatives, including ongoing assistance and empowerment, collaborative business planning, acknowledgement and incentivization of achievements, and fostering of innovative ideas and teamwork, are among the various activities undertaken.

Knowing The Challenges and Risks in Building Global Partnerships and Alliances

In addition to the benefits and importance of building global partnerships and alliances above, there are certainly risks and challenges that you face. 

Here are some of the risks and challenges in building global partnerships and alliances.

1. Trusting Wrong Partnerships

To gain a competitive edge, it’s crucial to establish trust in strategic partnerships and alliances. Any self-serving actions that harm the other partners should be stopped promptly. The stronger the relationship, the lower the risk of conflict. 

However, without trust and mutual understanding, disagreements on fundamental principles, controls, and goals can arise, indicating that the partnership is in trouble.

2. Unfit Strategic Management

In order to avoid failed strategic partnerships, it is crucial for firms to have competent alliance managers who can exploit managerial competence for each business. 

Trust between firms is essential, and assigning the best people to the job is key to achieving this goal. The lack of managerial efficiency can have serious consequences, making it imperative for firms to prioritize this aspect of their operations.

3. Changes in the Economic and Business Environment

Companies face uncertainty about the market, trends, and relevant events related to a partner, which poses a risk. Changes in the economic and business environment can jeopardize strategic partnerships and impact business strategies.

With the above benefits and advantages, are you ready to build global partnerships and alliances in your business?

If you still need consulting for building global partnerships and alliances, consult the right people!

See you in the next article.