Creating Profit Through Alliances - business models for collaboration E-book | Page 29
We divide the activities among our partners and they
are paid for their specific tasks. In most cases,
Logistics Executive takes care of the front end with
the customer and the partner is responsible for the
back end with the candidates. If a partner proposes a
candidate who is already in our database but had not
been noticed by us yet, the partner is paid in full.
Alliances versus other sourcing
methods
Which of us will conduct the meetings and final
negotiations is decided upon on a case-by-case basis.
We guarantee our customers a retention period of
two to twelve months. If the candidate leaves within
that timeframe we will repeat the process for free.
However, out of 900 placements a year, this only
comes up two or three times.”
By outsourcing these activities to parties that
possess the right competences. But then the
question is, can your competitors not do the
same, or have they not already done so?
By taking over a company that has the right
market position or the right products. But then
the question is, why have your investors not
already taken their money from your firm and
invested it in the other party?
Entering into an alliance with such a firm, and
partly combining your people and resources,
sharing your knowledge, and approaching your
clients with a broader offer.
The option you choose depends on a number of
preconditions that occur in any market:
To introduce new competences in your organisation,
there are generally four options to choose from:
By investing in the training of personnel or by
hiring the right people and deploying them in
either portfolio management and marketing
communication, or in product development.
the time available to bring a new product to
market;
the extent of investment and whether a firm
can afford it;
the acceptable measure of risk.
Direct investment in development activities or
broader marketing requires a lot of time, certainly if it
calls for new competences. Outsourcing is quicker,
but requires additional resources due to overhead
and your supplier's profit margin. Both run the risk of
investing in a client group that barely responds or in
a product that fails to succeed.
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