Strategic Alliances and the Importance of Combining Offerings: The wish of businesses to break into new markets to expand their reach is seeing more organizations consolidating their offerings through strategic alliances. This makes it possible to not only reach new a customer base but also gain access to new services offerings that wouldn’t have been possible before. And, importantly, they gain these new markets and new offerings without compromising any attention from their main area of expertise and specialty services: a win, win for all involved.
Expanding sales offerings
Having core competencies that make your brand known is fundamental to all business success. Therefore, to maintain success it’s vital to maintain these core competencies and not be distracted from your business. By entering a strategic alliance, you can continue to focus on your brand do this and expand your portfolio of goods or services simultaneously. For example, in 2017, UAS entered an alliance with Honeywell to combine both our company’s expertise and expand Honeywell’s flight deck and cabin connectivity services and to offer comprehensive international trip support services. We began offering a worldwide ACARS (datalink) service, branded as UAS Link Evolution™ that allowed our customers unlimited access to all worldwide VHF networks, including ARINC and SITA, as well as Inmarsat and Iridium satellite networks. So, we benefitted from Honeywell’s communications experience, and they benefited from our global trip support expertise.
Adding more value
The creation of alliances also helps to create economies of scale. Companies gain cost advantages when they culminate orders from their vendors and suppliers. This brings discounts and cost-savings; businesses gain competitive advantage and can pass down savings to their clients. With this blueprint, enormous value can be created at each stage of operation. Operational cost reductions could also result in more investment in research and development which helps to deliver sustainable value into the future.
Just a couple of explanations as to why alliances are so important and beneficial to both clients and businesses. Here’s to all of us reaping the benefits.