There are lots of explanations why businesses look to collaborate together.

Operating a business is a constant exercise in problem solving. Problems can emerge spontaneously, and thus many organisations attempt to develop contingency plans to get ready for different eventualities. Other dilemmas could be pre-emptively defined as threats or risks, and thus potentially the situation could be fixed before it even becomes a problem. Some dilemmas can be fixed internally, whereas others need outside assistance. Many companies, like Orica, are involved in partnerships which can be centred around a solution-based partnership to solve current or future dilemmas. These collaborations are popular as they have the potential to profit both organisations equally and possibly the complete industry as a whole. Everyone is restricted in the amount of knowledge and experience that they can contain and organisations are no different, and thus collaboration is essential for accessing vital insights which could develop revolutionary solutions.


Business is regarded as a very competitive environment, but in fact there's a large amount of collaboration between businesses on a regular basis around the globe. This does occur in a wide variety of business environments, from little farms to pharmaceutical corporations like Alvotech. In reality, you can find entire businesses that base their model around this type of collaboration. They are referred to as business to business organisations, or B2Bs. There are many reasons why a business would look to be a customer or a partner of a B2B business. Perhaps one of the most common is to expand into new markets. Most companies originate in one part of the world and a lot of their initial expertise is dependant on what works well in that country or region. In order to expand right into a new market, a business may well look for the aid of other companies for a new market partnership to achieve the right knowledge needed to be successful there.

Companies will help each other attract new clients. A sales alliance or sales partnership occurs when businesses seek to market complementary products and services together. This can come in many different forms. For instance, the two companies can bundle their products together in a shop, or simply produce a special deal where if a person purchases something from one of them, they obtain a discount when purchasing from the other company. Instead, services could be grouped together to ensure users of one of the businesses can be exposed to the services of the other company. As an example, by publishing content in various areas, a company like Paramount can have their content seen by people who could be drawn into becoming new clients. Similarly, their content may attract their current clients to use other solutions that their content is available on.