The Partners

Abstract

Nobody ever got fired for buying IBM. It is the safe bet for the department manager to buy a product from IBM because there is no risk to that purchase, because nobody will criticize you for having bought from IBM.Customers often have a problem to buy from a small company. Therefore you should try to get associated with some large names through partnerships. You will have to do everything to be credible in the eyes of the buyer. One excellent means to increase your credibility is to form alliances with important well-known industry players. Another real value of strategic alliances is that you get an insight into what is happening in different parts of the industry which might have an effect on you. When you are allying with the industry leaders who are forming a new industry, you yourself will become a part of the industry to partner with. In addition, through partnerships you will even be able to lock out your competition, creating high barriers to entry. A successful partnership can therefore create a tremendous leverage, enabling you to grow much faster than you probably could if you were just on your own.

Having partners in place will give you air cover in the market, so that when you go to a customer you are viewed as the glass half full rather than the glass half empty. (Mark Gorenberg, Hummer Winblad Venture Partners)