Importance of forming strategic partnerships
Becoming innovative, expanding into different and bigger markets, increasing market and share value while remaining agile is not something that a traditional business model can simply do today, no thanks to the complexity and rapid technological advancement that continues to change, evolve and revolve.
In order for organisations to grow, succeed and/or remain even relevant in this dynamically driven world today, the need to embark into strategic partnership with the like-minded individuals and organisations is paramount. My article today will shed light and focus on the importance of forming strategic partnership for organisation’s necessary growth, success and sustainability.
What does strategic partnership really mean anyways, and what does it entail?
Think of it as two or more, individuals and/or organisations, that form an agreement to help each other reach a desired goal that has tangible value to their selves and intended target (customer per se).
Help in the sense of sharing resources, risks, decisions and ultimate rewards emanating from the partnership. Goal in terms of market expansion, increase and retain of customer base, more revenue and the likes.
Growing, succeeding and sustaining is what most organisations strive for, and of course, strategic partnership plays a vital role in achieving this desired goal.
There are a number of organisations that have entered into fruitful strategic partnership over the years that demonstrate how industries collaborate to achieve shared goal, enhance offerings, and ultimately create value for their customers, be it in same or newer markets and industry all together.
International examples include Apple and Nike, Walmart and Fedex, and Mcdonald’s and Cocacola to name a few.
Local examples that I can share include full-fledge telecom operators e.g. Omantel forming partnership with Huawei, so as Ooredoo forming partnership with SAP, and the recent announcement of community initiatives forming strategic partnership with likeminded industries, for the sake of community engagements.
Let me start with details of some of the international strategic partnerships.
Apple, being a multinational technology company, and Nike, an athletic footwear and apparel company, collaborated to create Nike+ platform which integrated Nike’s fitness tracking technology with Apple’s IOS devices, resulting in products that allow users to track their workouts, set fitness goals and share progress with friends and family.
Walmart, another multinational retail company that operates a chain of hypermarkets discount department and grocery stores, and Fedex, a multinational company focused on transportation business, have also collaborated to offer convenient package pickup and drop-off services, that resulted in providing Walmart customers with ultimately enhanced shopping experience, thanks to the shipping and receiving packages via Fedex’s transportation services.
Lastly, Mcdonald’s, the multinational fast food chain, and Coca Cola, another multinational company that produces carbonated soft drinks, continue to have strategic partnership where you as a customer can get Coca Cola products while you have Mcdonald’s meals.
As for details on some of the local strategic partnerships, Omantel recently launched national cloud in cooperation with Huawei, providing its customers with global practices in the field of ensuring data security (via Huawei’s experience), while ensuring data is stored in the country.
Likewise, Ooredoo has partner with SAP (one of the largest provider of enterprise application software), to enable complete digital business transformation and consolidation of Enterprise
Resource Planning (ERP) solutions.
Last week, as Knowledge Oman signed a Memorandum of Understanding (MOU) with Techno Plastic Industry SAOC, specialising in the manufacturing of plastic piping solutions, to collaborate on community engagement and social responsibility, as part of its commitment to further strengthen the community engagement through strategic partnerships.
Thevalueofstrategicpartnership cannot be underestimated today — especially for organisations that seek to increase top-line revenue (sales) for their survival, and also secure their bottom-line (profits) for their supportive shareholders.
Working solo and expecting to compete in a hungry and evolving markets, where consumers are also not just aware but are also demanding quality services, is not something that can be taken lightly (as far as growth, success and sustainability is concerned).
Organisations need to keep an eye open and continuously seek for better ways to operate and collaborate if they wish to survive.
Until we catch up again next week, stay positive.