What are benefits and drawbacks of strategic partnering at the corporate level.

Question

benefits and drawbacks of strategic partnering at the corporate level.

Answer 1

benefits-potential to acquire new customers/business through sharing of customer base/greater exposure. each company and their customers benefit from unique expertise and core competencies of the combined effort.

drawbacks-equitable split of revenues may be fuzzy in some cases. risk of one partner shifting strategies such that their part of the combined effort loses support-each partner is dependent upon the other with no control over decisions, etc. that affect the combined effort. also risk of ptoentially competing against eachother in some ways-even with products and services outside of what they are jointly doing.