A partnership is a kind of business where a legal agreement between two or more people is made who agree to be the co-owners and distribute the responsibilities for running an organization while sharing the income or losses that the business generates.
Features of Partnership:
|Uber’s partnership with Spotify lets Uber riders easily stream their Spotify playlists whenever they take a ride. This makes the Uber experience feel more personalized and encourages Uber riders to subscribe to Spotify Premium to access music both inside and outside Uber.|
|Uber’s rivals don’t have a similar personalized music experience, so this gives the rideshare giant a competitive advantage over Lyft and other similar services. And since not all Uber riders have Spotify, and not all Spotify users ride with Uber, both brands gain access to new, broad audiences in this business alliance.
Reasons 1 & 2 Why Strategic Partnership is Important for Business Success
The most important reason for venturing into partnerships is access to new customers and markets. By forming a strategic partnership, businesses can serve larger territories without investing more infrastructure or expanding their distribution network. They can use new partner’s infrastructure and market territories. For example, Starbucks and Barnes & Noble and Uber and Spotify.
Many entrepreneurs fear change and they worry about its impact on their businesses. These changes can either be market-driven, industry-specific. Implementing business solutions with the help of a strategic partner can help reduce the impact of changes that might inhibit business growth.
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