STRATEGIC PARTNERSHIPS

Strategic Partnerships

Strategic Partnerships

Introduction

Strategic business partnership means through joint cooperation's or other forms of partnership that can give companies capital, advanced technology, management experience, and enhanced technological progresses in order to expand core competencies and expand domestic and foreign markets capabilities. These partnerships also promote technological progress and industrial upgrading of domestic and foreign enterprises (Wang, 2012, 81).

Since the late 1990s, business partnerships have become common both at the national level and enterprise level. They are based on their own interests and position in the system, to seek with other countries or companies to form some kind of strategic partnership. They mainly seek partnerships in areas of cooperation and development. Nations such as the U.S. and Russia, France and Russia, Japan and the United States, Japan and Russia, Russia and India, as well as Russia, China and the U.S., Canada and so on have established various forms of strategic partnership. At the corporate level, for example. Shandong Inspur Group and Microsoft Corporation formed a partnership to conclude a global strategic partnership with an international perspective for the local customer service; Chinese power and Accenture 's strategic cooperation was aimed at covering business strategy design, organizational planning and process restructuring. Similarly, Waves and Google both sides a strategic partnership in the search, information, advertising and other areas for all-round strategic partnership. The establishment of strategic cooperative partnership has become the new mode of operation under the new situation of political and economic development (Schroeder, 2012).

Discussion

Strategic partnership is based on a high degree of trust between partners who share a competitive advantage and long-term interests. It can produce an independent and significant impact on the outside world and for the cooperation of the parties to bring far-reaching significance (Ring, 2012).

Power of Partnerships

Partnerships of businesses leads to enhanced cooperation between the parties. With economic globalization accelerating, the 21st century market competition is no longer a competition between enterprises and between groups and interests but the interests of the group as well as value chain competitiveness. Competitive advantage has not produced a single enterprise; rather, it is only by the partners that contribute in the creation of the businesses and partnerships held jointly (Lin, 2013). Strategic partnership is in line with the trend of economic globalization, breaking the geographical boundaries of cooperation, industry boundaries no longer distinguish between domestic and foreign products. Its resilience, the ability to resist risks has been upgraded to international standards. As a result, a strategic partnership produces a competitive edge that is more powerful than the individual companies can achieve operational efforts. Actively involved in strategic cooperation, is to participate in today's competition. The United States has partnerships examples of Microsoft, Intel, Cisco, France Telecom, Alcatel and Portugal Telecom Group (Mangala, 2013).

Promotion of Complementary Resources

Resources are limited and it is decentralized and should therefore be distributed effectively. Benefits generated will be greater than the sum of its effectiveness when used alone and obtained by each business. In the establishment of a strategic partnership, the most important standard ...