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Building a successful joint venture requires strategy. However, there is a process, which you and your JV partner must follow in order to create a winning competitive strategy against current and potential competitors. Read on to find out how your JV can stand apart from the crowd with a winning competitive strategy.

1. The Business Plan:

Your JV can go nowhere without a roadmap. That’s where a well-written and defined business plan comes into play. If your joint venture plans to compete within a defined market, you will need to have a blueprint that defines who you are, what you will offer, how you will deliver it, and why customers should choose you over a competitor. The business plan is not the end-all strategic document written in stone. However, as mentioned, it is a blueprint in which you and your JV partner can develop your step-by-step competitive strategy.

2. Innovation:

In order to compete with other businesses, you will need to have an innovative solution added to your product or service. If two retail stores carry and sell the same hiking boot, why should customers buy from one or the other? The difference will be the innovation in the product or the marketing of the product. If you are the shoe store owner selling a hiking boot, you may team up with a bookstore seller to form a joint venture. Agree to offer a free local hiking guide to customers who buy your hiking boot selection, and include a coupon for the customer to buy any book at the bookstore for a discount. Through this strategic and innovative marketing technique, you can differentiate from the competition.

3. Marketing:

Unless your customers know your product or service exists, you won’t have any customer. Your marketing strategy is the lifeline between you and your market. Develop a message that strikes a proverbial chord with your customers. Tell them why they need your product. Explain the benefits to them. And let them know how they can get hold of your product or service.

Your message must reach the right audience. Be sure to define your target market and discover the most effective channels of marketing, such as PPC ads, SEO, and advertising on related blogs and websites that will reach that market.

4. Endeavor to Lead:

Part of your competitive strategy could be a notion that you and your JV partner want to become a leader in your market or extend a lead from the competition by joining forces. With your business plan blueprint in hand and innovation and marketing strategy set forth, you can set your JV to become a leader in the market you pursue. Find other ways to stand apart from the competition, such as

– Develop new products and services

– Create new markets

– Exploit and fill a niche

– Provide added-value with your product

– Extend the best in customer service and attention

– Be flexible to adapt to a fluid and evolving market

Your JV can be a giant success if you and your JV partner develop a winning competitive strategy. Don’t rush or be hasty with your strategy. Take the time to develop all the above elements to ensure that your competitive strategy has the right wheels and the road to follow.

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Copyright (c) 2009 Christian Fea:

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability. To discover more Joint Venture Marketing Strategies join his free Joint Venture Marketing Wealth Report.

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