Since the turn of the century, THP has become one of Vietnam’s leading private-sector companies. It has successfully ridden the wave of rising domestic consumption at home and taken its first steps to export abroad. This fast growth should continue, given that disposable incomes are still on a very sharp upward curve. GDP per capita has nearly doubled since 2009 and stood at $2,200 in 2017. In the biggest cities it is above $5,000, the level where economic growth really starts to accelerate fast.
This growth hasn’t been accomplished by operating alone. Strategic partnerships allow a business to expand, discover and succeed in ways that can’t be accomplished otherwise. The key is having those partnerships be beneficial for all parties involved.
THP is no stranger to being courted by some of the largest, most influential companies in the world. Western multinationals—Coca Cola, PepsiCo, Procter & Gamble, Nestlé—have all come marching into Vietnam to capitalize on one of Asia’s fastest-growing and largest markets. And though we are a big believer in focusing on local business, all economies benefit from having companies of all different sizes, along with the competition that it provokes.
Again, the partnership must be strategically beneficial for all parties, not just one. Ultimately a beneficial partnership is one that helps your company promote its vision. Now, just because an arrangement is “win-win” doesn’t mean a company has to be nice or compromise; it means the company must be clear about its strategic direction and find partners than can enhance or execute that. The fact is, no company can operate alone forever – partnering is a critical strategic skill.
THP’s success has always been determined by its partnerships with suppliers and distributors and contractors. Unlike Western multinationals, companies like THP have found success in partnering with others not to take them over, but to enter into a joint venture with a longer-term strategy.
Opportunities for collaboration will inevitably present themselves to your company; the right ones will be key to your growth. Consider the following as you evaluate those potential partnerships:
- Does your vision and the vision of the potential partner align?
- Is one entity benefitting significantly more than the other?
- What compromises or sacrifices are being asked of your company?
- How will their strengths help you? How will their weaknesses potentially hurt you?
- How will this partnership help you achieve your vision and goals?
Remember, partnerships are a necessary part of your company’s growth. Learn more by reading my book today!
