Forums: Discussions for entrepreneurs and small business.

Does anyone else use "stategic alliances" and cross-promotion, as a "marketing" tool, as we do at GoTruckStop.com?

In the next week or two, we will be unveiling a new dynamic strategic alliance, with one of our vendors. And best of all, the product line crosses all demographics.

I`m intesrested in hearing other success stories, or failures too. (Believe me, I`ve had my stumbles too)

Sometimes we (startups) try something ... and if it doesn`t work ... we never try it again. When in reality, it might have been that the timing wasn`t right ... or we simply didn`t execute the plan properly.

never heard of it. can you give a synopsis

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Vincent Wilcox (a.k.a. KRAKR)
Drummer
My band: Letters Make Words

The following comes from Bain & Co., a management consulting firm ...

http://www.bain.com/management_tools/tools_alliances.asp?gro upCode=2

Description

Strategic Alliances are agreements between firms in which each commits resources to achieve a common set of objectives. Companies may form Strategic Alliances with a wide variety of players: customers, suppliers, competitors, universities or divisions of government. Through Strategic Alliances, companies can improve competitive positioning, gain entry to new markets, supplement critical skills and share the risk or cost of major development projects.

Methodology

To form a Strategic Alliance, companies should:

• Define their business vision and strategy in order to understand how an alliance fits their objectives;
• Evaluate and select potential partners based on the level of synergy and the ability of the firms to work together;
• Develop a working relationship and mutual recognition of opportunities with the prospective partner;
• Negotiate and implement a formal agreement that includes systems to monitor performance.

Common Uses

Strategic Alliances are formed to:

• Reduce costs through economies of scale or increased knowledge;
• Increase access to new technology;
• Inhibit competitors;
• Enter new markets;
• Reduce cycle time;
• Improve research and development efforts;
• Improve quality.