Transportation Industry Benefits From Strategic Partnership With Mastercard |
Posted: June 1, 2018 |
New Partnerships Leading To Better Business It’s important for 21st century businesses to make relationships that are mutually beneficial. Building bridges and creating strong ties lead to great partnerships for business owners who understand that they are more resilient when they form corporate relationships that they can count on. Strategic business partnerships can be broken down into five distinct categories: vertical, horizontal, joint venture, equity and intersectional. In a vertical partnership, supply chain partners work together to guarantee better prices. The expectation is that there will be a lasting relationship between the two companies. Vertical partnerships can help protect companies from price increases in the long-term. Horizontal partnerships are created when two companies find a way to market their products by finding common ground such as a shared demographic or platform. It’s a way to cross-market, which in turn cuts down on marketing costs. In a joint venture, there is a blending of two established companies into one. The separate entities form a brand-new company and any profits are shared. Companies form equity partnerships when they purchase a percentage of the equity in another established business. Intersectional partnerships are created when companies opt to work with each other by trading specialized knowledge between the two companies. The transportation and logistics industry is always searching for ways to be more efficient and profitable. By partnering with other businesses for their needs in areas such as administration or payment solutions, employees in the trucking business can focus on what they do best. The partnership the fleet industry has with Mastercard is a prime example of how strategic partnerships are beneficial for fleet logistics. Mastercard makes transactions like paying employees or filling up the gas tank a smooth process. Their advanced technology makes it simple to access business records, complete financial transactions, and keep trucks rolling without delays. Mastercard’s solid reputation assures that the relationship between their company and the transportation industry will remain intact for the future. The process is of finding a viable strategic partner is important. Companies must weigh in on the potential benefits of partnering with another business and decide whether they will be able to gain profits, get information and can grow with the partner company. Koopman also specifies that there are 10 strategy points that business partners should use as a guide for their future success. These include technical integration, business planning, sales, alignment, partner compensation, governance, contracts, field readiness, marketing and executive engagement. It’s no secret that forming business partnerships are a great move in any industry. The transportation industry has benefitted greatly from working with Mastercard and will continue to do so in the future. All companies should seek out a strategic partner to work with if they want to be more profitable.
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