Strategic Partnership and Joint Venture

Tools for knowledge growth and performance improvement of organizations in line with business development policies

The strategic partnership is a word we have heard and read about over and over in recent years. From a commercial point of view, strategic partnership means long-term cooperation between two companies in order to achieve common goals. These goals can be in the areas of market development, production, exchange of knowledge and technology, and any other issue. In recent years, we have seen and heard many examples of it. Perhaps when the world’s two car companies, Renault and Nissan; Founded the Renault-Nissan Alliance in 1999; Few expected the problems of the two major automotive groups to be reduced to this extent, and the strategic partnership between the two companies, lead to the growth and synergy of all of the company’s subsidiaries. Currently, one out of every 10 cars produced in the world belongs to this company and this company controls seven of the world’s largest automakers and has largely distanced itself from the crisis of the 1990s that plagued its subsidiaries. The reason for this is obvious. Any strategic partnership and alliance in the business world mean achieving numerous advantages, the most important of which are:
Easier access to international markets: Due to strategic partnership, it is possible to easily be present in the market and the partner country, and through this, to establish easier access even to the regional markets of your partner.
Cost savings, especially R&D costs: R&D imposes high costs on organizations. Now suppose the two partners jointly pay these costs and reap the benefits. This means reducing organizational costs and, at the same time, can improve the performance of the collection
Increasing bargaining power in purchasing raw materials: Purchasing volume is closely related to reducing the cost price. The merger of two or more companies means the simultaneous purchase of raw materials and supplies, and this can increase bargaining power with suppliers.

But the strategic partnership has another great advantage, especially for Iranian companies, and that is the acquisition of knowledge and technology. In other words, strategic partnerships with large companies in the world can improve organizational knowledge, technological capabilities, and the process of creating added value in Iranian organizations because interaction with large companies provides learning opportunities for Iranian organizations and can add to their competitive advantage.