Definition
A strategic partnership is a an agreed-upon collaboration between businesses with common missions. Although partnerships can take on a number of objectives and levels of formality depending upon the nature of the agreement, the overall goal of strategic partnerships is to share resources in a way that promotes growth for all partners. Below find Partnerships can such as take place between businesses in the same industry or even across industries.
Types of Strategic Partnerships
| Type | Function |
| Horizontal | Businesses in the same area (i.e. competitors) agree to collaborate in a way that will improve their market position. |
| Vertical | A business collaborates with companies in its supply chain (its suppliers and/or distributors). Vertical partnerships often allow businesses to minimize risk in the supply chain and obtain lower prices in exchange for long-term commitment. Also known as channel partnerships [LINK] or supply chain partnerships. |
| Intersectional | Businesses from different areas agree to share their special knowledge for the advancement of all partners. |
| Two or more businesses form a new company. The new company is its own legal entity, and its profits are split according to terms spelled out in a formal contract. | |
| Equity | A company acquires a minor equity stake in another business in exchange for a monetary investment. Such exchanges can accompany other types of collaboration and, to a certain extent, agreed-upon access to decision making. |
Whether initiated between businesses in the same industry segment or businesses in completely different industries, partnerships can also be classified according to their purpose. For example: Development Partnership, Strategic Integration and Referral Partnerships, Cobranding, Strategic Sales Partnerships, Supply Chain and Channel Partnerships