Do you need more resources to reach your target market?
You don’t necessarily have all the knowledge and the resources to enter your target market. Why not partnering with other companies working in other industries or businesses to target this potential market? Both of you would then offer complementary products and/or services and would benefit from:
- Easier access to markets
- Sharing risks and expenses
- Sharing knowledge and expertise
A few examples of strategic alliances:
- Hairdresser with makeup services
- Photographer with a party caterer
- Personal trainer with a nutritionist
Some activities to conduct with your partner:
- Offering a package combining complementary products or services
- Using the same sales process for your products or services
- Organising seminars or a special customer events together
- Writing articles on each other’s newsletters or blogs, positioning both of you as experts
- Linking each other’s websites
What should you consider while selecting your partner?
- A compatible management style
- Complementary products or services
- Common strategic goals for the alliance
- Key questions to ask: has this partner entered other strategic alliances? Did they succeed or fail? Why? Is this potential partner financially stable?
Last but not least, be offensive on the market, marry your enemy!
You’re worried about what your competitor is doing? Why not partner with him instead of tracking every single move he makes? Now just consider here how powerful an alliance could be… Think of the following:
- Your competitor is marketing himself to your target market.
- Your competitor is investing a lot of time into research and development that could benefit you as well without hurting his profits.
- Your competitor is constantly testing, tracking and optimising his marketing materials, which could also benefit you.
Why not leveraging these resources while helping this competitor?
Remember though that this kind of strategy does not work with competitors that sell exactly the same product. It only works with competitors that sell similar solutions to a problem.