Corporate Partnership: A blend on Comparative Advantages

sekhar · Joined: 12 Feb 2007 Posts: 89 Location: Calcutta

Corporate Partnership or Strategic Partnership, what is that?
Simply some biggies are bonding their hands to spread the business like any sector. It is a kind of a mixture or blend of the businesses in the relative comparative advantage fields. This perhaps the building block of modern corporate partnership.

Big houses got realized that doing thing in a single hand in a Red Ocean Market would be a tough job. So to build Blue Ocean as well as newer demands they come together to spread the hands in home and also in overseas.

Ex: There are Five friends say for example.

One has Capital
One is good in Marketing
One has the brain to fix the business development strategies online and offline.
Two are extremely good in Technological aspects

When they join hands... Big punch appears.

Reliance Money the stock broking wing has joined hand to the Cafe coffee Day outlets to capture the net worth people to make brokerage and to expand their market.

Bharti airtel has focused the segment of the young generation who are desperate to spend more. Targeting the IT sector...tying up with the corporate connections to the cell phone users on the basis of commissions.

Insurance Companies are more and more concentrating on the rural sector with the help of the NGOs and CBOs to sale the life and health insurance policies.

So the big houses realized the basic international trading concepts of Economics...Comparative Advantage. If the cost is more in in-house, outsource that. So to involve in every business is quite difficult and impossible for some of the house. Tie up is the best policy to acquire more and more wealth and spread the business.