New Era Newspaper

New Era Epaper
Icon Collap
Home / Letter - Forging strategic partnerships

Letter - Forging strategic partnerships

2023-03-10  Correspondent

Letter - Forging strategic partnerships

Albertina Kashuupulwa

Alliances and partnerships have been making rounds as part of human history in all areas of life. Companies have entered partnerships across countries for reasons such as a desire to expand or a need to cut costs. It is imperative for companies to enter partnerships with others, however, it is very important to put in mind that not all partnership agreements work out as planned. It is sad to say that some companies have created massive problems by entering partnerships with poorly-aligned companies that fail to bring anything positive to the partnership. 

To avoid making similar mistakes, consider the following factors: 

Before entering any partnership, it is important to know what each company does and how they align or complement each other. Brand alignment has been defined by different scholars in a number of ways, however, most definitions emphasized on the aspect of brands sharing the same vision, mission, values, complementary products, services or target audiences (Appel-Meulenbroek and Danivska, 2021). In addition, brand alignment is a pre-requisite to building strategic partnerships as it ensures mutually beneficially relations that serve the needs of both companies. 

Moreover, different start-ups aspire to enter partnerships but it is imperative that they both understand their strategic objectives and goals. Operations tend to run smoothly when companies enter partnerships with businesses whose goals and objectives complements theirs.  Hakansson and Snehota (1995) emphasised that there is not much benefit or gain from partnerships created between companies with no commonalities in any area. 

In addition, a number of partnerships tend to fail because of lack of respect and trust between the two partners. One of the core priorities of entering partnerships is the benefit of making decisions together; therefore, ultimate respect of each other abilities and personalities is the root to constructing effective business partnerships. 

Furthermore, financial contributions form a ground for many business partnerships as they play a significant role in determining the success of partnerships. This type of contributions may take a form of cash investments, in-kind contributions or revenue sharing arrangements. However, many partnerships were not fruitful due to un-willingness of partners to agree on the financial terms and expectations of the partnership up-front. A clear understanding of the financial commitment and responsibility of each partner is required as a pre-requisite in fueling the success of partnerships. 

Strategic partnerships are very important for the success of companies as they enhance business credibility, image and has a potential of increasing customer base. In addition, the goal of every company is to remain relevant for a long time and reach a set goals and objectives, therefore, business partnerships guarantee access to more knowledge, innovation, expertise, networking opportunities and even funds that are all pertinent for companies to flourish. However, companies must at all cost avoid entering partnerships where they stand no chance of growing.  


* Albertina Kashuupulwa is a PhD Candidate and a Communication and digital marketing professional. She writes in her personal capacity.

2023-03-10  Correspondent

Share on social media