Understanding Strategic Partnership and Alliance

Scott McNeally, the Chairman of Sun Microsystem, is fond of saying that the only strategic partners are those bringing in purchase orders. It is a vivid description that any partnership must make money for both parties. Otherwise, the partnership cannot sustain. The cost of a failed partnership includes not only the resources and time invested to establish the partnership but also the opportunity cost – lost time window of opportunity, potential profitable partnership not pursued due to the existing constraints such as resources or contract restrictions.

The wrong partnership can break a startup venture and severely cripple the new entry for an established company.

The IPO Group can help you assess and evaluate the right partnership and guide you through with a checklist to establish successful partnership and alliance.