Business development involves processes and jobs to develop and implement sustainable growth opportunities in between and within companies. It is a smaller subset of the disciplines of organizational theory, business, and commerce. It studies how people, organizations, and markets interact and what actions produce the results desired. Developing businesses requires that organizations develop the ability to identify, plan, and control how they develop their aptitude for growth. It also requires understanding that markets do not, as they so often are painted, respond rapidly to external stimuli and that flexibility, adaptability, and the ability to “read and act” are an integral part of business development. Your business app is also an important part of your business plan. App development and app prototyping are something you keep in your business plan for better growth.
Strategic Partnerships
Strategic partnerships are emerging as strategic business development strategies. The term was first used by Robert Kaplan and David Norton in their famous book, “The Economic Strategy Decision Model: A Guide for Creating Business Models That Matter.” Strategic partnerships emerged as the “third way out” for companies seeking to create lasting competitive advantage. The authors describe these partnerships as follows, “strategic partnership, multilateral cooperation, international venture, or bilateral collaboration.”
Multilateral Cooperation
A multilateral cooperation partnership occurs when two or more organizations cooperate to pursue common goals. Examples include the United States-European Union; the European Union with the European Investment Program (EUROP), Japan with the Japan Exchange and Policy (JETP), and the European Central Bank (ECB). These types of agreements allow for increased cooperation across borders and can lead to increased productivity and market share. A bilateral collaboration refers to a relationship where two organizations with divergent goals work together to achieve a common objective. A new market refers to a large group of potential customers. The goal for each strategy is the same – to expand the business development team’s reach.
Strategies need to be developed and implemented. A business development manager develops a number of strategic partnerships and describes the strategies in an executive summary. Marketing strategies refer to the activities undertaken to promote the business development team’s domestic and global objectives. A marketing strategy should integrate internal and external business development activities and be aligned with company objectives. International collaboration refers to the sharing of information on strategies and practices that will make the company more globally competitive.
The business development strategy and marketing strategy are used to obtain visibility for the firm by other firms. Visibility is achieved by firms that want to do business with a firm that has knowledge and experience in creating new market sectors. In this case, the firm uses its position in an industry to create a new market sector. Many new ventures require funding. Visibility helps these venture firms get the funding they need.
Networking Strategy
Another example of strategy and tactics is the implementation of a networking strategy. The business development manager conducts seminars and workshops to educate networking partners on the strategies and tactics used to enlarge their businesses. The development strategy is not used to build customer loyalty, but rather to build partnerships. The tactics and strategies do not include advertising but focus more on the generation of new potential partners. These partners then become potential customers when they can use the products and services of the networked firm.
Sales Promotion
Other tactics and strategies include sales promotion, which is a mix of tactics and strategies. Sales promotion is used to attract new prospects and also to maintain the interest of existing customers. This can be done through creating awareness, conducting surveys, and other means. Other business development strategies include event sponsorship, trade shows, and trade association membership drives. The marketing strategy refers to the activities undertaken to promote the domestic and global objectives of a firm. Sales and networking are important elements in any business development strategy. Sales promotion is a tactic to attract new sales. Networking is an aspect of marketing that includes communicating with potential partners, suppliers, and other prospects.
