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
- (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
- (B) Are you seeking to create new options for the firm and/or build a capability platform? or
- (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
- (A) high levels of uncertainty, with a wide range of risky options for growth;
- (B) moderate levels of uncertainty, under which you can make some strategic bets on a narrower range of growth options; or
- (C) relatively low levels of uncertainty, when growth is possible primarily by increasing scope and/or scale?
- “A” answers would lead to a Window Strategy; “B” answers to an Options Strategy; and “C” answers to a Positioning Strategy.