Strategic Partnership—Best Solution for Future Businesses


Strategic Partnership

——Best Solution for Future Businesses



——Amir Tafti

With the take a look at to CNOOD Company, you realize this company is a young company, not only according date of establishment but also based on the working forces that all of them looking for more knowledge & more experiences to reach better perfection. On the other hand, you also find that right now CNOOD try & even involved in different fields of businesses & projects, that means more challenges & difficulties.

如果大家关注一下施璐德公司,就会发现这是一家朝气蓬勃的年轻公司,这不仅在于公司成立的时间较短,更体现在我们的员工面貌上 - 我们每个人都在努力学习更多知识和积累更多经验,不断完善自我。另一方面,您还会发现,施璐德公司正在尝试甚至在涉足不同的业务领域和项目,而这意味着要面对更多的困难和挑战。

As one person with more than 35 years special work experiences in both governmental & private sectors, I know very well that no company in the world capable to enter many different businesses & fields simultaneously, but such solutions existed, so I would like to pulling you toward one of these solutions that how we can prepare our CNOOD for businesses & projects in different fields?




A Strategic Partnership is an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations. Strategic Partnership can develop in outsourcing relationships where the parties desire to achieve long-term win-win benefits and innovation based on mutually desired outcomes.


This form of cooperation lies between mergers and acquisitions and organic growth. Strategic partnership occurs when two or more organizations join together to pursue mutual benefits


Partners may provide the strategic partnership with resources such as products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The Partnership is cooperation or collaboration which aims for a synergy where each partner hopes that the benefits from the partner will be greater than those from individual efforts.




There are several ways of defining a strategic partnership, but two methods are more common: Strategic partnership based on the Joint Ventures & Strategic partnership excluding the Joint Ventures.


1- Definitions of Strategic partnership based on the Joint Ventures


· This model is an agreement between two or more players to share resources or knowledge, to be beneficial to all parties involved. It is a way to supplement internal assets, capabilities and activities, with access to needed resources or processes from outside players such as suppliers, customers, competitors, companies in different industries, or divisions of government.


· On the other hand, this model is an organizational and legal construct wherein "partners" are willing-in fact, motivated-to act in concert and share core competencies. This is especially relevant in strategic outsourcing relationships.


2- Definitions of Strategic partnership excluding the Joint Ventures


· An arrangement between two companies that have decided to share resources to undertake a specific, mutually beneficial project. A strategic partnership is less involved and less permanent than a joint venture, in which two companies typically pool resources to create a separate business entity. This model could help a company develop a more effective process, expand into a new market or develop an advantage over a competitor, among other possibilities.


· Agreement for cooperation among two or more independent firms to work together toward common objectives. Unlike in a joint venture, firms in a strategic partnership do not form a new entity to further their aims but collaborate while remaining apart and distinct.


Types of Strategic Partnership according to the purposes


· Technology development partnership, which are partners with the purpose of improvement in technology and know-how, for example consolidated Research & Development departments, agreements about simultaneous engineering, technology commercialization agreements as well as licensing or joint development agreements.

技术开发伙伴关系 - 合作各方都希望改进技术和提高专有知识水平,例如可能会合并研发部门;达成共同开展工程设计的协议、技术商业化协议以及许可协议或联合开发协议。

· Operations and logistics partnership, where partners either share the costs of implementing new manufacturing or production facilities, or utilize already existing infrastructure in foreign countries owned by a local company.

运营和物流伙伴关系 - 合作伙伴共同承担建造新制造设施或生产设施的成本,或利用当地公司在国外的既有基础设施。

· Marketing, sales and service strategic partnership, in which companies take advantage of the existing marketing and distribution infrastructure of another enterprise in a foreign market to distribute its own products to provide easier access to these markets.

市场营销、销售和服务战略伙伴关系 - 企业利用合作伙伴在国外市场的现有营销和分销基础设施来经销自己的产品,从而更易于进入这些市场。

Kinds of strategic partnership according to the models


· Licensing: A company pays for the right to use another companies technology or production processes.


· Industry Standard Groups: These are groups of normally large enterprises that try to enforce technical standards according to their own production processes.


· Outsourcing: Production steps that do not belong to the core competencies of a firm are likely to be outsourced, which means that another company is paid to accomplish these tasks.


· Affiliate Marketing: Affiliate marketing is a web-based distribution method where one partner provides the possibility of selling products via its sales channels in exchange of a beforehand defined provision.


Goals of Strategic Partnership


· All-in-one solution


· Flexibility


· Acquisition of new customers


· Add strengths, reduce weaknesses


· Access to new markets & technologies


· Common sources


· Shared risk




For companies there are many reasons to enter a Strategic Partnership:


· Shared risk: The partnerships allow the involved companies to offset their market exposure. Strategic Partnership probably work best if the company’s portfolio complement each other, but do not directly compete.


· Shared knowledge: Sharing skills (distribution, marketing, and management), brands, market knowledge, technical know-how and assets leads to synergistic effects, which result in pool of resources which is more valuable than the separated single resources in the particular company.


· Opportunities for growth: Using the partner´s distribution networks in combination with taking advantage of a good brand image can help a company to grow faster than it would on its own.


· Speed to market: Speed to market is an essential success factor in nowadays competitive markets and the right partner can help to distinctly improve this.


· Complexity: As complexity increases, it is more and more difficult to manage all requirements and challenges a company has to face, so pooling of expertise and knowledge can help to best serve customers.


· Innovation: The parties in an partnership can jointly determine their mutual desired outcomes and craft a collaborative contract that features incentives designed to spur investments in innovation.


· Costs: Partnerships can help to lower costs, especially in non-profit areas like research & development.


· Access to resources: Partners in a Strategic Partnership can help each other by giving access to resources, (personnel, finances, technology) which enables the partner to produce its products in a higher quality or more cost efficient way.


· Access to target markets: Sometimes, collaboration with a local partner is the only way to enter a specific market. Especially developing countries want to avoid that their resources are exploited, which makes it hard for foreign companies to enter these markets alone.




Although this kind of partnership have many advantages, but even contains of some disadvantages: 


· Sharing: In a Strategic Partnership the partners must share resources and profits and often skills and know-how. This can be critical if business secrets are included in this knowledge.


· Creating a Competitor: The partner in a strategic partnership might become a competitor one day, if it profited enough from the partner and grew enough to end the partnership and then is able to operate on its own in the same market segment.


· Opportunity Costs: Focusing and committing is necessary to run a Strategic Partnership successfully but might discourage from taking other opportunities, which might be beneficial as well.


· Uneven Partnership: When the decision powers are distributed very uneven, the weaker partner might be forced to act according to the will of the more powerful partners even if it is actually not willing to do so.


· Foreign confiscation: If a company is engaged in a foreign country, there is the risk that the government of this country might try to seize this local business so that the domestic company can have all the market on its own.


· Risk of losing control over proprietary information, especially regarding complex transactions requiring extensive coordination and intensive information sharing.



(Importance of Strategic Partnership)


Strategic Partnership have developed from an option to a necessity in many markets and industries. Variation in markets and requirements leads to an increasing use of Strategic Partnership. It is of essential importance to integrate Strategic Partnership management into the overall corporate strategy to advance products and services, enter new markets and leverage technology and Research & Development.


Nowadays, global companies have many partners on inland markets as well as global partnerships, sometimes even with competitors, which leads to challenges such as keeping up competition or protecting own interests while managing the Partners.


As I mentioned at first, CNOOD is a young company, but with bright future, hope so we can find the best solutions for our CNOOD, will be ready for future businesses & projects in different fields.


Keep Learning, Collect the Experiences & ready for Bright Future.


作者简介 About Author

Amir Tafti

I am Amir Tafti. With BS in Aircraft Engineering & more than 35 years of special work experiences both governmental & private in different sectors, especially industrial fields. When I take a look at to my past years, I find myself as one lucky person according some reasons. The main one for 20 years I worked in one special governmental office to responsible audit the different projects in my country, so I started my first & last job in government from common employee to top level manger, I learned a lot & can collected a huge related experiences. After that even in private sector is a good & challengeable platform for me to grow as qualified person.

Now in 58 years old, it is my pleasure to act as one CNOOD team & do my best to transfer my experiences & knowledge to my colleagues to create a better competitive environment.


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