Strategic Alliances in Singapore
Strategic Alliances in Singapore can be in the form of a joint venture, cooperative arrangements, or collaboration on specific projects between potential competitors or competitors from different countries, suppliers, or other firms with complementary services or products that can enhance the existing service or product link.
For both the private and security investigations industry, Strategic Alliances in Singapore are formed to add potential value to service that is being provided to the client by the companies. It will also develop a unique selling point, which will be the firm's competitive advantage.
What are Strategic Alliances in Singapore?
Strategic Alliances in Singapore are connected between two or more parties to seek a set of goals or to meet a critical business need while enjoying the freedom of an independent organization. Partners can contribute to Strategic Alliances in Singapore with resources like services, products, distribution channels, capability manufacturing, capital equipment, expert knowledge, project funding, and many more.
The Strategic Alliances, in other terms, is a collaboration that targets cooperation where each partner wants benefits. Such a benefit would derive more results rather than individual efforts. Companies may contribute Strategic Alliance with different players, including customers, suppliers, competitors, universities, or divisions of government. Strategic Alliances companies can increase competitive positioning, achieve entry to new markets, strengthen critical skills, and share the risk or cost of prime development projects.
A successful Strategic Alliances in Singapore has the following objectives:
- The alliance is critical to the success of a core business objective or goal.
- The alliance is critical to the maintenance or development of a core competency or any other source of the competitive advantage.
- Alliance blocks a competitive threat.
- Alliance maintains or creates strategic choices for the entity.
- Alliance mitigates a significant risk to the entity or business.
If the things, as mentioned earlier, exist in partnership, both the organizations benefit from a symbiotic relationship that drives the corporation forward, removes threats and competition, and establishes leadership in the market.
As more and more businesses build their partner ecosystems, companies that do not actively maintain and build these relationships will struggle on their own, without the tools to be competitive in a global market.
How to Form Strategic Alliances in Singapore?
The process to form Strategic Alliances in Singapore is as follows:
- Determine their business concept and strategy to grasp how an alliance adjusts its objectives.
- Assess and opt for potential partners as per the level of collaboration and the capacity of the firms to work together.
- Build a working connection and mutual recognition of opportunities with the proposed partner.
- Allocate and execute a formal agreement that states about systems to manage performance.
What are the different types of Strategic Alliances in Singapore?
A Joint Venture is a subsidiary company of two-parent entities or companies. It is maintained by sharing equity and resources with an agreement that is binding. Whether a joint venture is formed for an ongoing strategy or a specific purpose, a joint venture should always have a clear objective, and the profits earned are required to be split between the companies.
In the year 2016, the parent company of Google named Alphabet announced a joint venture with another company named GlaxoSmithKline to do research on treating diseases with the use of electrical signals. The new joint venture, Galvani Bioelectronics, has continued to grow till now and has brought many new partners to build devices. The joint venture further worked in researching the emerging field of bioelectronics.
Equity Strategic Alliance
An Equity Strategic Alliance in Singapore occurs when a company purchases equity in another company, also known as a partial acquisition, or each business purchases equity in each other, also known as cross-equity transactions.
An example of an Equity Strategic Alliance in Singapore is a relationship of Tesla with Panasonic. The relationship between these companies began with a $30 million investment for Panasonic to accelerate the battery technology for electric vehicles which grew to build a lithium-ion battery plant in Nevada.
Non-Equity Strategic Alliance
A Non-Equity Strategic Alliance is an organization that creates an agreement to share the resources without creating sharing equity or separate entity. Non-Equity Strategic Alliances are often more informal than a partnership that involves equity. This type of Strategic Alliance in Singapore makes up the vast majority of the business alliance in the market.
Taking equity-sharing out of an equation can be a strategic advantage in development and research, production, sales, and marketing. In the earlier mentioned example of Galvani Bioelectronics, there were non-equity Strategic Alliances that have grown out of an original joint venture through the Project Baseline. The Non-Equity Strategic Alliances in Singapore is a connected ecosystem of various organizations that are working together to create a more comprehensive, and precise map of human health.
What are the advantages of Strategic Alliances in Singapore?
The advantages of Strategic Alliances in Singapore are as follows:
- The primary benefit of strategic alliance is it gives freedom to business for getting benefits through accessing to other partner resources, including markets, technologies, capital, and much more. Combining with other companies offers complementary resources and skills, making it possible for a business to develop and expand quickly and efficiently.
- It reduces the cost of an organization by deducting the manufacturing costs, developing, and implementing the latest technologies quickly.
- Strategic Alliances in Singapore boosts product introduction and increase trade for the alliances.
- It is one of the reliable and practical techniques for achieving growth objectives in global markets.
- It works well when the partnership's portfolio complements each other but not compete directly. Strategic Allowance promotes a business to offset its market exposure.
- Strategic Alliance partnerships promote mutually on the technical expertise of a couple of businesses in administering with products technologically beyond the capability of business running separately. Both companies benefit from the technology and resources of the partnership.
- When business shares their resources economies of scale and scope can be achieved. Strategic alliance includes access to broader marketing channels that a sole business cannot afford outside the partnership.
- Collaboration and competitive advantage are factors that lead companies for an increased success rate.
- Apart from these businesses obtain experience from partners and develop competencies. These competencies can be used in other countries.
What are the Disadvantages of Strategic Alliances in Singapore?
The disadvantages of Strategic Alliances in Singapore are as follows:
- They have undoubtedly built-in challenges. The partner that used to handle the entire business internally now is depended on another partner.
- There is a risk involved if the parties are not financially equal. There is a risk of loss of operational control and confidentiality of proprietary knowledge and technology.
- Different alliances can face a clash of corporate culture or observed diminution of independence.
- A partner may seize future business opportunities with competitors.
- A contractual agreement is essential that would guarantee that alliance would be right for you in the business.
- In a strategic alliance, both organizations must give up some control over how their business is carried out.
- Agreements can be signed to protect trade skills, transfer of technology and intellectual property rights.
- A strategic alliance can give rise to a potential competitor, who later decides to collaborate no longer if achieved the right profitable amount.
What are the primary factors for achieving a successful Strategic Alliances in Singapore?
The primary factors for achieving a successful Strategic Alliance in Singapore are:
- Plan a strategy first;
- Invest in Joint upfront planning;
- Consider planning for the end;
- Build Trust;
- Start with small business;
- Maintain information and records; and
- Build an enterprise-wide capability.
Strategic Alliances in Singapore can provide outperformance and competitive advantage. However, these rewards come with a high risk.
There is no sure formula to promote the success of the alliance; there are many factors that need to be contributed by each member. Trust and collaboration are vital factors to experience to ensure collaboration between the strategic alliance. A strong business strategy connected with well-planned execution can boost the chances of success and well-positioned to leverage these methods for sustainable competitive advantage.
How are Strategic Alliances in Singapore formed?
The following steps are required to be followed while setting up a Strategic Alliances in Singapore:
- If you are willing to set up a Strategic Alliance in Singapore, you must meet the criterion of State laws and corporation. You need to set a name for the company and draft corporate by-laws.
- You need to hire a director who would be able to cooperate and form an alliance relationship to boost business and improve efficiency in corporate governance strategies.
- The director will manage projects and budgets in general. The director has to be a Singapore permanent resident.
- A local business association may aid you in understanding various procedures and increase the chances of a successful strategic alliance.