Recent news concerning IT industry strategic alliances increasingly trumpet the word "unique" as in 'unique alliance' or 'unique partnership'. Usually these unique arrangements bring together a marketer (either a system integrator or a service provider) with a solid footprint in a niche market and a technology developer or manufacturer with an innovative or proprietary capability.
Laptop Battery This type of alliance transfers to the marketer a unique technological edge. The marketer's objective in many such cases is to keep competitors at bay, grow market share or create enough performance value to justify a higher price. For the developer partner, aligning with the marketer provides a significantly extended market reach that simply translates into the sale of an increased number of units as well as a branding leap into greater market visibility.
"This is an example of how innovative technology can enable a significant business transformation providing real value to a client. IBM recognized the potential value of RFID early on and moved aggressively to support its clients in software, by investing in research and development, and with services, in building unique professional capabilities and skills, " said Augusto De Castro, Vice President Industrial Sector, IBM Italy. "An effective working relationship with honda was crucial to identify the process needs and envision true business benefits, having access to IBM competence centres to design the solution."
Thinkpad This deal constitutes an excellent exchange of value for both partners. But as business alliances are not forever, the true assessment of the deal's value must be evaluated over time. In its early days Microsoft supplied DOS in a partnership with IBM's original desktop PC. In time Microsoft's OS took over the PC market supplying all manufacturers. IBM was forced to back up out of the PC driveway, but it learned the power of partnering brilliantly transforming its business model into the world's most prolific and successful IT services partnership network builder.
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Microsoft
Acquiring a Unique Value Proposition
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Laptop Computers Of the many reasons for initiating a strategic alliance, the most highly-sought after type is one that creates a "unique value proposition" (UVP) - the three golden words so enticing to venture investors throughout the world.
Steve Morton, Symantec VP of product management and strategy, said, ÚT organizations often have the right people, tools and best practices but lack the ability to integrate them in a way that provides business value. Workflow Solution can create confidence in IT operations by streamlining processes and helping the IT organization focus on the most critical business needs. Symantec is bringing to life best practices that were formally relegated to books collecting dust in the server closet.
Laptop Computer How do you get UVP if you don't produce it?
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Desktop Computer A strategic alliance can transform nearly any traditional sales and distribution enterprise into a uniquely positioned provider -- all you need are customers! Have your considered this? Transform your company instantly into an unstoppable juggernaut simply by formulating a strategic alliance with one or more suppliers who may add a unique piece to your package, program or end-to-end offerings. Suddenly, your company acquires a UVP. More orders, greater equity value...before you know it, investors come sniffing around.
Notebooks What are they looking for?
Lenovo They want to know what you'll do for your next act.
Hard Drive Sure. That first alliance you just made was a successful move. It got attention. And it's working. But, don't get too busy with that. Save some time for developing additional alliance ideas. You need to look at your company's future in terms of a total, long-term strategic alliances plan.
Travelstar
Six key questions to formulating a long-term alliance road map
Gateway Use these six Partner M questions to develop your own alliance road map:
Laptop Parts - What are my core competencies?
- What are my customer assets?
- How bad are the performance gaps as experienced by my customer/user?
- What are the innovative upgrades desired by my customer/user?
- How well are my competitors performing in areas where we are weak?
- Where do we perform better than our competitors?
Software Now answer this:
Can you locate and negotiate a deal with potential suppliers who can deliver to you
a unique product or service that:
(a) your company cannot duplicate more profitably with its core competence;
(b) will be highly valued by your customers;
(c) will fix a problem or enable you to offer customers an optional upgrade;
(d) will strengthen an area where you had been weak; or,
(e) will help insure that you can continue to outperform our competitors?
Hard Drives If your answer is yes to any one or more of these options, then you have the basis for a strategy that would result in higher order volume, as well as a path to added value and increased brand equity.
Electronics How do you validate that assumption?
Canon
Project the pros and cons of executing your alliance plan
Desktop Pc Calculate a scenario assuming the amount of revenue you could generate and profits you would achieve after you've found one such partner and have successfully negotiated an alliance.
Desktop Computers Be sure you have identified and adjusted your projection for any possible downside and cost of implementing the partnership. Next, forecast where you'll be in three years without this alliance or a comparable strategy.
Think Pad In addition you should assess the impact of your alliance on the competition with a sober determination of how they may react. Here is where the value of establishing a 'unique alliance' becomes so important. Paradoxically, your alliance's UVP shelf life must be viewed as both temporary and continuous. Any one alliance you enter is temporary. Your strategy must be continuous.
Repair How temporary is your alliance? If any of your competitors can match your partnership with another and duplicate the contribution of your unique ally in fairly short order, your UVP will not last long. You may need to move faster to extend the your UVP shelf life and begin to plan your next UVP partnership. Within this scenario you would need to move faster on the alliance front or find yourself having to play deep catch up if your competitor takes the initiative before you do.
Data Recovery
Design an ongoing alliance strategy
Cisco To develop a continuous UVP plan extend your alliance road map by duplicating your forecast calculations to include all potential alliances you foresee into the future. How far can you go using this strategy? If possible, don't stop until you're able to imagine this process reaching a global scale or an exit strategy. Finally, your alliance plan must weigh alliance costs and risks against the benefits/costs/risks of alternative strategies.
Keyboard Whether your enterprise takes the role of a marketer or a supplier, you should consider formulating a phased-in partnership plan containing a list of target partner prospects, financial validations, a timeline and undertake a marketing initiative aimed at shaping a receptive and synergistic relationship with partner executives and operational teams. Executing the plan is your next challenge. Don't hesitate to seek help in developing your plan and making it happen.
Monitor
Desktop Harvey Kraft is Managing Director of Partner | M -- http://partnershipsmedia.com -- the California-based marketing consultancy specializing in executive support for strategic alliances and partnering initiatives. Mr. Kraft is a skilled partnerships executive, author and speaker, and creative marketing director with two decades of senior experience in the media, finance, publishing and wellness sectors.
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