How to Use Alliances to Penetrate New Markets
From the CEO's Desk
How to Use Alliances to Penetrate New Markets
Alliances hold great promise for companies that want to enter new markets but are not familiar with their dynamics. The object of an alliance is to locate a suitable partner who already sells into that market and is familiar with it. They will help you understand how to penetrate and sell into that market. At the same time, you will help them achieve one or more pre-established objectives that will benefit their company.
Some keys to a successful alliance are:
- having the wholehearted support of senior management
- making sure that the “point” people are of peer ranking
- making sure each of the partners have compatible cultures
- building measurable goals into the terms of the alliance
Companies considering an alliance should ask themselves:
- Do we communicate well?
- Do our people know how to collaborate?
- Are we capable of commitment?
- Can we respond quickly to change?
It is not uncommon today for alliances to be formed between buyers and vendors, or vendors and manufacturers. Just because something has not been done before, does not make it a bad idea. Many of the most popular products on the market today did not exist five or more years ago. Alliances created many of those products and in some cases, created new markets in which to sell them. Success lies in having an especially open and flexible attitude toward marketing and being able to accept new techniques and methods. Now it’s time to go to market!