Strategic Agreement

The use and exploitation of strategic alliances are not only opportunities and benefits. There are also risks and limitations that need to be taken into consideration. Failures are often attributed to unrealistic expectations, lack of commitment, cultural differences, divergent strategic goals, and insufficient trust. Some of the risks are listed below:[2][18] In a long-term strategic alliance, one party may become dependent on the other. A disruption of the alliance can endanger the health of the company. Such an agreement can exist between a digital marketing agency and a graphic designer, a web designer and a database management company or an internet service provider and an email provider, to name just a few of the many possibilities. Some good examples of strategic partnership agreements between brands, which you may have heard of, are starbucks` Barnes & Nobles bookstore stores, hp and Disney ultra-high-tech mission: space attraction, as well as the partnership agreement between Nokia and Microsoft for building Windows phones. A company can enter into a strategic alliance to expand into a new market, improve its product range or give itself an edge over the competition. The agreement allows two companies to work towards a common goal from which both benefit. You don`t need monthly storage for printer maintenance if you saved more money by switching to a paperless solution. So rewrite the situation before signing up for a strategic partnership. Never enter into an alliance just to say you have a strategic partner.

Let`s take a look at five common types of strategic partnerships and what leads to a typical strategic partnership agreement. The distinction between a true strategic alliance agreement and a look-alike agreement, described as such, is often elusive. This is partly due to the different levels of meaning that each party can give to the agreement. What is strategic for one party can be business as usual for another party. Therefore, it is not necessary for both parties to attach equal importance to the agreement for it to be placed at the level of a strategic relationship. Typically, strategic alliances focus on increasing revenue or reducing costs and have as an essential element the concept of coinciding with another company in a way that is not for either organization as usual.. . . .

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