“Co-operation is a vital component of corporate strategy; companies should form strategic alliances, especially with organisations in related- and supporting-industries.”
Michael Porter, icon of business strategy and competitiveness
Michael Porter, icon of business strategy and competitiveness
What are Strategic Alliances?
Although a concept which has yet to garner as much attention in developing economies than it does in the more established economies, the formation of strategic alliances – between two or more otherwise independent organisations – is finding increasing relevance in the modern economy.
Among its many advantages, a strategic alliance offers its participating alliance members a significantly faster and easier way of accessing capabilities residing outside their own organisation.
If coordinated and implemented correctly, these alliances represent an appealing mechanism for an organisation wishing to expand its current market reach and / or aiming to break into new territory.
However, as could be expected, the most successful adopters of the alliance concept have tended to be the more powerful multinational corporations, resulting in a business environment where the wealthiest are becoming ever more dominant, while the rest are consigned to scrap for the leftovers.
Among its many advantages, a strategic alliance offers its participating alliance members a significantly faster and easier way of accessing capabilities residing outside their own organisation.
If coordinated and implemented correctly, these alliances represent an appealing mechanism for an organisation wishing to expand its current market reach and / or aiming to break into new territory.
However, as could be expected, the most successful adopters of the alliance concept have tended to be the more powerful multinational corporations, resulting in a business environment where the wealthiest are becoming ever more dominant, while the rest are consigned to scrap for the leftovers.
The Bumps Alliance Development Difference
The Bumps Alliance Development service seeks to redress the above-mentioned imbalance by offering growing enterprises (with requisite ambition) the use of our matchmaking network and alliance management expertise.
As one can imagine, the decision to enter into an alliance with external organisations (perhaps even competitors) is not one which can be taken lightly. A failed or inequitable alliance has the potential to cause irreversible damage to its members.
Firstly, we are here to help our clients critically analyse whether entering into an alliance is, indeed, in our clients’ best interests. If so, we are then able to short-list the most suitable and willing alliance partners who share the same objectives.
If all goes to plan, the Bumps Alliance Development team then manages the governance and administrative functions to ensure that all alliance members are able to achieve their respective aims throughout the life-span of the alliance.
As one can imagine, the decision to enter into an alliance with external organisations (perhaps even competitors) is not one which can be taken lightly. A failed or inequitable alliance has the potential to cause irreversible damage to its members.
Firstly, we are here to help our clients critically analyse whether entering into an alliance is, indeed, in our clients’ best interests. If so, we are then able to short-list the most suitable and willing alliance partners who share the same objectives.
If all goes to plan, the Bumps Alliance Development team then manages the governance and administrative functions to ensure that all alliance members are able to achieve their respective aims throughout the life-span of the alliance.
Risk vs. Reward
Although alliance members' motives for entering into an alliance can range from strategic, economic or functional objectives, our clients can expect some of the following benefits:
- more effective penetration into new niche markets
- increased potential of market share expansion
- increased flexibility in satisfying range of customer demands
- significantly lower investment capital required
- faster time-to-market of new product / service
- increased profit margins due to reduced overhead and investment costs
- reduced period to commence operations
- greater operational flexibility
- reduced overall risk
Please note:
The above summary of benefits does not cover the full spectrum of options available to our clients, and is merely indicative.
To find out more about how this service could help your organisation, please take a minute to complete the contact form on this site, and we will contact you to personally answer all your questions.
The above summary of benefits does not cover the full spectrum of options available to our clients, and is merely indicative.
To find out more about how this service could help your organisation, please take a minute to complete the contact form on this site, and we will contact you to personally answer all your questions.