Fullscreen Menu - Background

Subscribe to SME News Search for an article Our amazing team

Ground Floor, Suites B-D, The Maltsters,
1-2 Wetmore Road, Burton upon Trent
Staffordshire, DE14 1LS

Background
Posted 1st July 2024

The Benefits of Strategic Partnerships for SMEs

For many SMEs, a strategic partnership might represent a tempting way to further the reach and capability of the business. They’re a means of creating growth, gaining a market advantage, and navigating particular challenges – among other things. If you’re weighing the possibilities, it’s worth thinking about the key advantages. Market reach The right partner […]

Mouse Scroll AnimationScroll to keep reading
Fixed Badge - Right
the benefits of strategic partnerships for smes.


The Benefits of Strategic Partnerships for SMEs

For many SMEs, a strategic partnership might represent a tempting way to further the reach and capability of the business. They’re a means of creating growth, gaining a market advantage, and navigating particular challenges – among other things.

If you’re weighing the possibilities, it’s worth thinking about the key advantages.

Market reach

The right partner might allow you to reach into markets that would otherwise be inaccessible. This might mean crossing a national boundary, and making use of expertise and skills possessed by your partners that allow them to deliver products and services more effectively than you could.

For example, corporate lawyers might have a detailed knowledge of consumer regulations in foreign territories. With their help, you might be able to sidestep legal headaches and ultimately access an entirely new market.

Improving products

By collaborating with the right partner, you can deliver a product that’s superior to the one you came up with on your own. For example, if you’re selling kitchen cabinets, then you might work alongside a partner that specialises in high-quality mechanical hinges. This might lend you a competitive advantage, since your cabinets will end up closing much more smoothly than those of your rivals. If you make the partnership exclusive, then the benefits might be even more considerable.

Sharing Resources and Reducing Costs

Both parties in a partnership can benefit from economies of scale. In a sense, they might function as a single larger organisation. The closer the relationship, the more apparent the economies of scale will be. If each business specialises in a particular aspect of a production process, then the savings can be significant – provided that the two are appropriately organised.

Fostering Innovation

One problem that affects many SMEs is siloed thinking. When you work and collaborate with the same small group of people every day, you might become blind to new ways of doing things. A partnership can suddenly disrupt things. You might notice that the partner company approaches a problem from an entirely novel and different direction. With these insights, you can drive innovation in both partners, while disregarding practices that you don’t think you can learn any lessons from.

Accessing New Customer Bases

New partners might also be able to access demographic niches, too. In the modern digital economy, the most obvious way to do this is with the help of a digital influencer. You might have a product, and they have the audience. If they publically endorse your product, then their audience will perceive your product as valuable.

Endorsements can be direct – a product review, for example. Or, they might be indirect. Getting the right person to wear your t-shirt and post the picture can be highly lucrative!

Categories: News


You might also like...
Expert Reveals the Top Recruitment Challenges SMEs Faced in 2023 and How to Solve ThemNews19th February 2024Expert Reveals the Top Recruitment Challenges SMEs Faced in 2023 and How to Solve Them

Data shows that the unemployment rate in the UK is on the rise. With so many people looking for jobs, businesses can struggle to find the right candidates.

Artokingo, Invests in Organic T-ShirtsBusiness News20th July 2017Artokingo, Invests in Organic T-Shirts

Artokingo, the London based t-shirt brand, now prints all of their quirky designs on organic t-shirts at no extra cost.

SME News Media Pack

Every quarter we offer a new issue of SME News which is published on our website, shared to our social media following and circulated to in excess of 78,000 individuals from various sectors across the UK SME marketplace.

  • TickExpand your reach.
  • TickGrow your enterprise.
  • TickSecure new clients.
View Media Pack
Media Pack - Bottom Slant Gradient
we are sme.
Arrow