When companies collaborate with its supplier to produce a product or a service this partnership, is called a vertical partnership. Through the knowledge exchange, the company has a deep relationship with its supplier, that become actively involved in the production process of their product. This vertical alliance has a higher success rate than a horizontal alliance because the company treats its supplier more than a partner, as a competitor, that often happens in horizontal partnerships. (Sarkissian, 2016)
A unique form of partnership is outsourcing, where a company hires another company to perform a particular function on its behalf. (Mohr, Sengupta, & Slater, 2014). Alfred Sarkissian from Demand Media stated that an important success factor …show more content…
“Any company which thinks it can manage without partners is probably dreaming. But partnering with the right people is critical, and as with many other things – the truth always finds you!” Frank Williams, Fonder and Team Principal, Williams
A big risk is the dependence on a vender. In the case of Moley the robotic hands are a main part of the whole concept and Moley depend on Shadow Robotic. Moley needs to get the hand in the agreed quality at the confirmed time to the accepted price. Each factor is important for the success of the product.
Moley could also lose its competitive advantage by sharing important trade secrets because Shadow Robotics may use the information to compete on their own. Shadow Robotic may look for another company that can integrate their robotic hand and determine their relationship with Moley.
If Moley fails to get acceptance of the public because of outsourcing of the kitchen design to the two Italian companies instead of using British companies there could be a public backlash and the consumer may refuse to buy the …show more content…
Without this both basic elements, any partnership will fail. Another important factor is that the goals of the partners are not too different. In my example of the Moley kitchen the goals of Mark Cutcosky, from the Stanford University, Moley Robotics and Shadow robotics were the same: to launch a perfect robotic hand. Further important elements are honesty and open communication that is necessary if a partnership should last and be successful until the end.
Also necessary is an appropriate governance structure that helps to manage the ongoing interaction between the partners and an escalation level where disagreements can be addressed and settled. Clear rules need to be written down in contractual agreements to clarify obligations and expectations and business partners must stick to the rules and play fair. With open communication, each problem can be solved right at the beginning and nothing stands in the way of a successful business
A unique form of partnership is outsourcing, where a company hires another company to perform a particular function on its behalf. (Mohr, Sengupta, & Slater, 2014). Alfred Sarkissian from Demand Media stated that an important success factor …show more content…
“Any company which thinks it can manage without partners is probably dreaming. But partnering with the right people is critical, and as with many other things – the truth always finds you!” Frank Williams, Fonder and Team Principal, Williams
A big risk is the dependence on a vender. In the case of Moley the robotic hands are a main part of the whole concept and Moley depend on Shadow Robotic. Moley needs to get the hand in the agreed quality at the confirmed time to the accepted price. Each factor is important for the success of the product.
Moley could also lose its competitive advantage by sharing important trade secrets because Shadow Robotics may use the information to compete on their own. Shadow Robotic may look for another company that can integrate their robotic hand and determine their relationship with Moley.
If Moley fails to get acceptance of the public because of outsourcing of the kitchen design to the two Italian companies instead of using British companies there could be a public backlash and the consumer may refuse to buy the …show more content…
Without this both basic elements, any partnership will fail. Another important factor is that the goals of the partners are not too different. In my example of the Moley kitchen the goals of Mark Cutcosky, from the Stanford University, Moley Robotics and Shadow robotics were the same: to launch a perfect robotic hand. Further important elements are honesty and open communication that is necessary if a partnership should last and be successful until the end.
Also necessary is an appropriate governance structure that helps to manage the ongoing interaction between the partners and an escalation level where disagreements can be addressed and settled. Clear rules need to be written down in contractual agreements to clarify obligations and expectations and business partners must stick to the rules and play fair. With open communication, each problem can be solved right at the beginning and nothing stands in the way of a successful business