There’s strength in numbers. Sometimes, business ventures benefit from global partnerships that help you streamline operations, expand your reach, or capitalize on a new market opportunity. A global partnership could add credibility to your brand, help you enhance your product offerings, or open up an entirely new market for your company.
Before you enter into a global business relationship of any kind, you should know a few things, however. Many a law firm specializing in business matters will tell you it’s better to avoid disagreements now, before they become genuine issues leading to partnership breakdown and the cessation of contracts. Here are some key considerations to keep in mind as you build strategic partnerships around the globe:
Brand Synergy
If you’re an established brand, you’ve worked hard to cultivate a brand identity your target audience trusts. Before entering into a global partnership, you should ensure that prospective business partners share and embody your brand’s core values.
For instance, if you operate a sustainable brand that prioritizes environmentally friendly materials, it’s likely not in your best interest to enter into a partnership with a brand known for its greenhouse gas emissions. While that may seem rather obvious, you may need to look beyond the surface. Thoroughly research the businesses you seek to partner with to ensure synergy in practices and priorities, and don’t be afraid to learn from the mistakes of others.
For instance, Lego was compelled to end its longstanding partnership with Shell a decade ago when Greenpeace questioned the toy company’s affiliation with the oil and gas producer known for its offshore drilling practices. Shell’s plans to drill in the Arctic brought it all to a head. Greenpeace, a network of independent campaigning organizations, made a viral video that garnered millions of views and ended with the message, “Tell Lego to end its partnership with Shell.” The toy company ultimately terminated that partnership amid the pressure.
Remember, when forging global relationships, you should seek partners whose brand values align with your own. If your global partner’s views are incompatible with that of your brand, you may face outside pressure to cut ties with them.
Open Communication
Any strong partnership is rooted in honest, open communication, so ensure both parties are on the same page before entering into an agreement. Begin by researching your global partner’s preferred communication style. For example, is it more formal or informal? Do they prefer telephone calls, video conferences, or email communications? Are they only available during typical nine-to-five business hours, or do they respond around the clock?
While it’s customary in American culture to shake hands when greeting a business partner, it’s more common to bow to a business partner in Japan. In fact, according to the EU-Japan Centre for Industrial Cooperation, the Japanese highly value business etiquette and protocol. So, if you’re looking for a global partner in the Japanese market, educating yourself on appropriate business conduct would be wise.
Adapting to the social norms of your global partner’s home country will help you make an excellent first impression and encourage open lines of communication as you move forward in the partnership.
Cultural Sensitivity
As you familiarize yourself with cultural norms in other parts of the world, be sensitive to each country’s inherent beliefs and traditions. For instance, an article in the Harvard Business Review notes that North American companies tend to prioritize financial gain more than companies elsewhere in the world. Adopting a more relational approach may strengthen the global partnership and generate better results, especially in regions that assign high value to social or cultural aspects of the relationship.
Alignment of Marketing Goals
When one party enters into a partnership with another, there’s a belief that the relationship will be mutually beneficial—that the whole of the partnership is greater than the sum of its parts. But in order to engage in such a collaboration, marketing goals have to align.
Just as you developed your own branding and marketing materials, alignment of marketing goals may entail the execution of a co-branding strategy alongside your global partner. Outline your marketing objectives, decide what platforms to target, and decide how best to convey your unique joint value proposition to your audiences.
Your joint value proposition should convey to consumers the unique benefits of your global partnership. Demonstrate how your product or service has improved or what new solutions this joint venture offers.
Measurable Results
Once you’ve agreed on your marketing goals, decide on a way to assess whether those benchmarks are being met. In order to know whether the partnership is generating the desired outcomes, you have to be able to measure tangible results. Identifying and tracking your key performance indicators (KPIs) will assist you in gauging the effectiveness of your collaborative marketing efforts. KPIs are quantifiable measurements that provide important consumer insights.
Are you trying to convert leads to sales, strengthen brand loyalty, or increase your market share? If you want to achieve any of these marketing goals, you may want to track conversion rates, customer retention, and return on investment.
Pinpointing and evaluating your KPIs will help you understand what’s working in the partnership and what isn’t. Consumer insights are key to determining whether you should refine your marketing strategy or capitalize on specific areas of opportunity.
Need help finding the right partner? If you want to tap into global partnerships, consider working with a reputable marketing agency, such as InnoVision Global Marketing. An established global marketing agency may have a vast network of international connections to assist you in leveraging partnerships you would otherwise not be able to secure on your own.
Finding and securing the right global partnerships is often key to a brand’s international success. Just as entering the wrong global partnership could be bad for business, selecting the right one could elevate your brand to new heights. So consider these key points as you make your mark in the world of global business.
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