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  • Event : Global Strategic Partnership
  • Date : Watchout for 2024 events

Strategic Global Partnership

Our global strategic partnership allows multiple individuals or two or more firms from different countries work as a team. They pool their resources or skills to provide better products or services. Furthermore, they reach a broader audience through collaboration. At Abosom, we engage in global strategic partnerships because we believe the partnership will lead to synergy, which means increased economic benefits.

Reaching a Broader Audience

Through collaboration, our partners reach a wider audience than they could by working alone. Each partner relies on the other's reputation in its primary area of operation. Customers may not even realize the partner in their home country has teamed up with an outside firm, they only know they're receiving a wider range of services or better products. Also, at Abosom, if each partner has a strong reputation around the world, creating a high-profile partnership with these partners may signal that their offerings have dramatically improved.

Creating a Separate Entity

In our global strategic partnership, two or more parties might create a separate legal entity that they co-own: This is called an equity joint venture. Each party might own the same percentage of the company, or they might divide the ownership so that one partner owns the majority of the company. For example, two parties could own 50 percent each, or four parties could own 25 percent each; alternatively, one party could own 60 percent and the other could own 40 percent. These percentages reflect how much each party has invested in the company. Further, the percentages determine how much each party has in the company's decisions and how much profit they receive. This type of ownership arrangement has largely replaced the traditional hierarchical structure in which one partner acts as a parent company that controls the others. However, the partners must agree on how to organize the decision-making process to avoid confusion.

Starting a Cooperative Joint Venture

Rather than create a separate legal entity, our partners could simply join together for a designated period of time: This is called a cooperative joint venture. Through this partnership, they can take advantage of marketing conditions that increase demand for a service they can offer together. Partners also pursue research and exploration together through this type of agreement. The parties draw up a contract outlining each party's responsibilities and how much of the profits each party receives. The limited time frame of this partnership makes sense because of dynamic and unpredictable international marketing conditions.

Investing in a Global Strategic Partnership

Each party in the partnership might invest funds, as well as labor, knowledge, facilities, equipment and land. Alternatively, one party might grant the use of its land for the partnership's activities. Because these resources don't each come with a specific price tag, the partners must agree on the value of the resources to determine how much each party has invested.

To know more about our partnership, do well to register as a partner and we'll get in touch with you.