Genmax Case

To: CEO OF GENMAX

Dear CEO of GenMax,

I think it is quite natural for a business such as GenMax to want to go it alone and do not involve anyone else in what they want to do but with the economy of today it can be risky as well. There is always this fear and the issue that rises when forming alliance with other company which may undermine your own business and profits. There is also the matter of danger of any potential problems, even legal ones that such partnership might throw you into. However, on the other hand, if GenMax is serious about growing as a business sooner or later than GenMax will have to think of ways of expanding to more demanding markets. Unless you are in a position to hire additional staff to grow your company's skills set, you are bound to start thinking of a business alliance, at least to ma point where your business is ready for a natural expansion.

Unfortunately, and as with everything with life, there are good and bad sides to building strategic relationships with other companies and that is what I want to discuss today and show the cons and the pros of going at it alone and partnering.

Pros:

I happen to think that the main reason for partnering with other businesses is usually to bring more work in and in relation to that those partnerships work perfectly. They are also a good way to quickly find clients if you just started a business and don't have many clients yet but since GenMax has a high reputation of producing high-end luxury cars than going at it alone would be ideal for GenMax. GenMax has worked hard to get their reputation and bringing in a new partner will be a risk since so much is on the line and a partnership might just ruin that very reputation. By partnering with other companies which offer supplementary services or products to yours you can offer more and thus go after bigger and better accounts. Their requirements are usually much bigger than what you could deliver on your own but as a partnership you can deliver practically anything that's required.

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In return you can also create a marketing network in which all partners benefit from others business connections and help to promote each other's businesses to their contacts which can widen your Verizon's.

Cons:

I think that it would be best for GenMax to go at it alone simply because if you bring in a partner than you opening your clients list to others. And if you start going after clients together with your partners you do the same with some of your internal policies and strategies like pricing and quoting structures and so on which GenMax has worked so hard to manage for so many years. Of course how much of the information that GenMax reveal is entirely up to GenMax however at some point you will have to give away some of your confidential information. Partnerships would not be good idea for GenMax simply because partnerships are easy to abuse by