Article Tags : business . Management . strategic alliances . teamwork management
You need to have a team. Collaborative effort today is the core element for personal and investment “success.”
More wealth in the past was based upon control of physical assets in the form of real estate, natural resources, factories, etc. Cheap, functional labor combined with large capital investments – many times immobile and tied to a certain geography. This bred hierarchical structures with rule and decision – making from the top.
For example, I could be a single person and own a real estate building. I could own many properties purchased from people with whom I may never interact again. The relationship is purely transactional – one purchase and sale. I have no loyalty except to my assets. I could be wealthy. I could be a loner.
Today, software, entertainment, media properties’ value rests more on intellectual assets – various patents, brands, trademarks, creativity, brainpower- rather than physical assets. The core issues: seek a remarkable product/service with demonstrable uniqueness, competitive advantage and a unique selling proposition. In many cases, physical production is less important. Global competition – cheap labor, available factory capacity – make control of proprietary rights and the ability to market critical. Because of global competition, the rate of technological change, and shifting consumer tastes, no organization can remain alone or a loner. Large and small companies continue to strategic alliances. Expertise and resources are shared.
For example, smaller companies often need the money staff and distribution power of larger companies. Larger companies need the innovative products and services of smaller companies.
Strategic alliances bring about tremendous leverage similar to braintrusts or MasterMinds. They combine strategy, technique, and resources (physical and human). Strategic alliances bring more information and clarity which in turn increase odds of choosing the right strategy, maintaining flexibility, and creating the channels to reach the ultimate customer with the highest quality product or service. Whether you are an individual or a large enterprise, you should form strategic alliances to leverage your expertise and resources.
The main challenge of strategic alliances is the disparity of resources. Both parties need to define their goals up front and set terms that neutralize each party’s advantage over the other.