Benefits of Co-Branding

I was recently approached with a partnership opportunity. As part of the agreement my potential partner would like to co-brand our services, I run a travel agency and he runs a boutique luggage shop. This sounds intriguing and the other company has a solid reputation, I’m just not sure if this is the direction my company should take. Some other colleagues have told me this is too risky. Does anyone have advice and experience in co-branding partnerships?

Hi Sarah,

I have no experience in the travel industry - but as an outsider, I would think that any travel agency would want to diversify right now. The market is down for travel and more people are using online sites like kayak.com to get the best deal - easily. I would say it is more risky to stay where you are than to consider alternate revenue streams, because I can't see how the travel agency business can survive, unless you specialize in exotic trips or very high touch corporate work.....

Best

Sian

As part of a successful strategic planning process, the management team may have determined that it can achieve growth in its core businesses or in a new business segment through an acquisition. Whether you are involved in a consumer products/services business or whether your company operates exclusively in a B2B environment, you should always consider any major business move from the perspective of your customer. After the deal is done, a tremendous amount of effort is required to effectively combine the two companies.  Regardless of the determination on the part of both management teams to make the deal work, the process is complicated, resource-taxing and, in most cases, personal.  The cultural compatibility of the teams can be the critical factor in a smooth transition of ownership.