Partnerships are a good way to support a business in growing, there are 3 broad types of partnerships, which to use is dependant on the goal.

  • Window Strategy – this is where you form R&D relationships, capitalising on the R&D focus of partners, giving the technology application and access, and giving the partnering business a technological edge. 
  • Options Strategy – this allows a company to use a variety of partners, allowing the company to spread their risk with moderate investments in partners paying way to assess their respective successes before further investing.
  • Positioning Strategy – this is more common where two partners with complementary capabilities partner to give an even more competitive advantage. 
  • Appropriate steps –
  • What is the goal you want to achieve from the partnership
    1. (A) Do you need to track technologies or develop- ments in your industry, learn what they mean, and stay in the flow of ideas? or 
    2. (B) Are you seeking to create new options for the firm and/or build a capability platform? or 
    3. (C) Are you looking for scale-based advantages, market segmentation, or a new customer base? 
  • What is the magnitude and complexity, relative to the returns, Are you experiencing
    1. (A) high levels of uncertainty, with a wide range of risky options for growth;
    2. (B) moderate levels of uncertainty, under which you can make some strategic bets on a narrower range of growth options; or 
    3. (C) relatively low levels of uncertainty, when growth is possible primarily by increasing scope and/or scale? 
  1. “A” answers would lead to a Window Strategy; “B” answers to an Options Strategy; and “C” answers to a Positioning Strategy. 

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