A strategic partnership (see strategic alliance) is a relationship between two commercial enterprises, usually formalized by one or more commercial contracts. A strategic partnership will generally be less than a legal partnership unit, agency or corporate partnership. Strategic partnerships can take many forms, ranging from shake-hand agreements to contractual cooperation, to equity alliances, either the creation of a joint venture or cross holdings. It can get even more complex, but you will always see that kind of thing on a strategic partnership agreement. They want to put everything on paper so that there is no question as to who will do what later. Many companies opt for quality control and audit clauses in their partnership contracts to preserve the integrity of products or services resulting from the partnership. The activities of a strategic partnership may also include a joint research and development service between the partners. This requires more exchange of knowledge and a greater shared use of technological capabilities. However, the costs and risks of innovation can be shared among partners. [1] Strategic partnerships for integration are very common in the digital age, as it is always great that different applications collaborate or, at the very least, communicate with each other. Companies have long entered into strategic partnerships to improve their offerings and offset their costs.

The general idea is that two are better than one, and by combining resources, partner companies add benefits to both companies through the alliance. Another fantastic example of strategic partnership for integration is the agreement between Nike and Apple. Beginning in the early 2000s, Nike and Apple began tying their respective products and technologies to create what would later become Nike. When purchasing fitness shoes and specific clothing, customers can pair their products with their iPhone apple or watch to track their health and achieve other health goals. Creating strategic partnerships can have many benefits. Robert M. Grant notes in his book Contemporary Strategy Analysis: “For comprehensive strategies, creating an option value means positioning the company so that it has a wide range of opportunities.” [4] Companies that use strategic partnerships can use the strengths of other companies to strengthen both companies over the long term. Another example may be the presence of Starbucks subsidiaries in bookstores such as Barnes and Noble. It is that it makes the product of the brand profiles available and increased of both.

A strategic partnership that, if done well, benefits only with minimal losses. As part of a strategic partnership, two companies are interweeding their efforts in a particular area, such as marketing, supply chain, integration, technology, finance or a combination of these. In the current market, some experts say this is the way to go into strategic alliances. With the complexity of the market requirements, it is impossible to remain as rigid as a mountain. It is better to bend and follow the river while maintaining a path, like a river. Partnering with useful organizations offers several benefits that collect contributions for the long distance. But to reap the benefits, you must engage in an alliance that perfectly matches your request. Read on to learn about the different types of strategic partnerships and some of its benefits. In the case of proper and transparent compliance, these agreements are the main means of satisfying all parties involved and customers.

Otherwise, the partner is a strategic partnership that could one day become a competition if it benefits sufficiently from the alliance.