Tag: Alliances

Alliances – a vital component for success of SMEs

A well-rounded set of strengths is needed to succeed, and that is where alliances come in handy.

SMEs generally account for a good proportion of economic growth and employment.

The business landscape in any economy is characterised by the presence of thousands of small and medium-sized enterprises (SMEs).

They are often involved in a range of activities – from low-technology to high-technology manufacturing – and also in various kinds of services.

However, mortality rate for SMEs seems high.

Typically, SMEs have a narrow set of skills and strengths. Many businesses are born out of an interesting product or service idea of the business owner.

Tesla Motors was born out of Elon Musk’s passion for electric cars.

However, narrow sets of skills – even if they are in the form of a superior product or service – often do not translate into business performance.

Alliances are looser forms of cooperation than acquisitions – minority equity stakes, or arrangements involving research, distribution and cross-licensing.

Alliances can be altered to address an evolving environment.


A key benefit of alliances is that they can be formed with a variety of partners, each enabling an SME…

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