Creating Profit Through Alliances - business models for collaboration E-book | Page 38

3.

Creation of value
This chapter explores the question what the specific
value of an alliance is, and how this value can be
quantified. This is a requisite component of any
business case when seeking to collaborate. The three
generic strategies -- customer relevance, having a
unique product and striving for cost advantages -- will
serve as a classification structure.

Increasing relevance for your
customer

In Chapter 1 we examined how companies can set
themselves apart and in that way enhance their
profitability. Three generic strategies emerged here:
increasing your relevance for customers, offering a
unique product, and achieving cost benefits.
Particularly the first two yield a sustainable
competitive advantage.
Chapter 2 discussed the importance of alliances as a
means of accelerating your strategy. Specifically
when a partner possesses competences that your
company cannot develop easily but that do add much
value for your customer, it is wise to enter into an
alliance. We subsequently identified ten basic forms
of alliances.

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The term 'customer relevance' pertains to the access
a company has to offer its products and services to its
target group. After all, any target group, whether it
consists of consumers or people with purchasing
responsibility within a company, are exposed to so
much information and so many opinions and offers,
that they have built up a highly effective filter in
response. In addition, they exercise a great variety of
tactics to rid themselves of unwanted promoters,
collectors and salespersons.
Customers will pay attention to your product if your
message is relevant to them at that moment (see
Figure 19). This means that the promise held out by
your brand, and its elaboration in products, service,
marketing communication or distribution, connects to
their actual need. Customer relevance thus begins
with a clear brand promise.