"The forces of a powerful ally can be useful and good to those who have recourse to them...

but are perilous to those who become dependent on them." Niccolo Machiavelli, "The Prince"

If you cant join em, beat em - a dogma that slowly crept into the corporate world made a home for itself over the last few decades and is here to stay. This path was initially the privilege of the larger corporations, which used it as a tool to eventually acquire smaller corporations in international territories. However, over time, the playing field has been levelled as the smaller players have learnt to leverage these partnerships to push their own interests. As a result, a steady rise has been witnessed in the number of joint ventures that have been formed in the last few years. Strategic partnerships come in various shapes and sizes. In todays economy they provide a platform which enables each party to strengthen its resources and can help your business take that next step. Their importance transcends geographical boundaries, sectors and organizational size alike. In fact, it may be argued that forming an alliance is a form of innovation in itself. The various advantages that a partner can bring to the table can range from gaining access to new markets/distribution networks to an understanding of the socio-economic practices prevalent in a market. In spite of the various benefits partnership, it is startling that ventures suffer from significantly failure rates. According to of a joint high some

estimates, as many as 60% of such alliances go belly up within the first 5 years. Recent events such as the falling-out between Hersheys and Godrej have highlighted the fact that not all such endeavours will bear the fruit that one has in mind and also that even established players are not precluded from falling into traps that befall such endeavours. In light of this, it becomes even more important that one must learn from such events and weigh their options before jumping into bed with an ally. Before going down the path of entering into a partnership, an organization must take into account that that at times: The other party will have divergent visions. Considering that two There will be un-equal reciprocity. Cultural mismatches will often Occur. Most partnerships will suffer from a lack of trust.

These factors along with other varied forces can combine to derail the progress of a partnership. With this knowledge in hand, the road to identifying a suitable partner can be made smoother an organization now possesses knowledge of the various pitfalls. These can subsequently be avoided by: A properly defined and executed strategy is half the battle won.

Understanding your partner their goals and requirements. Conducting due diligence. Openness at both ends.

Identifying and evaluating a partner is a multi-step process that must take its due course for the partnership to prove successful. It is imperative that your organization map out its goals/ expectations from the partnership. Equally important - the roles and responsibilities of each party must be clearly defined so that everyone is on the same page. Even in todays ever connected internet age, identifying a suitable partner is an arduous and exhaustive exercise. It is unlikely that even the largest of organizations will possess the resources which would bring in knowledge of minute details about the landscape in international markets - The details that can help make or break a venture. Your organization, though it may be a major player, might not even have its name recognized in emerging markets.

It is in such scenarios where the services of a knowledge partner become essential. An organization which can come in, provide guidance/hand holding, help you avoid the pitfalls and lead you onto the path to a fruitful partnership. These organizations, based on their experience and expertise can help: Identify and evaluate prospective partners. Define goals of the partnership. Structure the partnership agreement Comply with regulatory/legal requirements. Avoid Intellectual Property theft a major issue in the developing world.

One must remember that at the core of every process/ decision is the human element - a force that cannot always be controlled. Joint Ventures will continue to be formed and will continue to fail. What makes the collaboration successful is thoroughness and knowing all possible options.