Essay Sample on Forming Strategic Partnerships: Does the America's Natural Gas Highway Need One?

Why do businesses form Strategic Partnerships? Does the creation of the America's Natural Gas Highway require such Partnership? Why or why not?

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The success of different forms of business is dependable on various factors. One of the main factors that may help a business to success is partnering with other parties. The first reason why companies form a strategic partnership is to broaden the product as well as the service offering (Isoraite, 2014). Many companies offer different sets of products; hence their loyal customer bases vary from one another. Therefore, when such businesses come together, the product provided will be improved so that it can meet the needs of all the consumers. In the process, the two businesses grow as there will be an increased number of customers. The second reason why companies form strategic partnerships is to create brand awareness (Isoraite, 2014). For example, when a coffee shop partners with an airline, the customers will be aware of the existing coffee brand, and they may appreciate it. The third reason why businesses form a strategic partnership is to improve certain weaknesses (Isoraite, 2014). Most businesses, especially those are new, have a weakness. Therefore, partnering with other businesses will help it to strengthen these weaknesses so that they can succeed. In the case of the natural gas highway, there is a need for the creation of such partnerships. For example, the Natural Gas highway will need to partner with other companies such as the gas companies which will be providing the gas.

What opportunities in the External Environment that may have led Navistar and Clean Energy to Formulate their Plan for the America's Natural Gas Highway?

Several external factors have influenced the idea of coming up with the natural gas highway. One of these factors is the consumers. In recent days, consumers have shown their desire towards purchasing vehicles that are eco-friendly (Curran, Wagner, Graves and Keller, 2014). However, the fueling infrastructure has not been effective, and this has driven then into a dilemma on whether they should invest in the eco-friendly vehicles or not. Therefore, in the scenario presented, it is evident that consumer's interest is one of the main factors that led to the development of the Natural Gas Highway.

The second external factors that influenced the development of the natural gas high way are organizations. Different organizations such as Navistar and clean energy fuels have come together and identified there is a need for natural gas (Curran, Wagner, Graves and Keller, 2014). Therefore, these organizations teamed up, shared their skills as well as resources to come up with the solution that would ensure this demand is met. There is a high chance that these organizations will be able to sell natural gas efficiently to all the customers in the United States.

Threats in the External Environment that could cause this comprehensive natural gas strategy to fail? What can managers to do to help ensure that the plan is executed successfully?

As much as several opportunities have paved the way for the development of the natural gas high way, certain threats may cause the plan to fail. One of the threats facing the two companies is the presence of stiff competition (Gullion, 2015). The need for natural gas is a new problem within the consumers. Therefore, other firms may come up and provide more effective solutions that may attract customers.

The second threat that is facing the development of the natural gas highway is complexity. The natural gas high way involves the construction of more than 500 gas stations across the United States (Gullion, 2015). Constructing these stations is a complex task, and this may pose a great risk to the strategies because a lot of resources will be required in the process.

The third threat is the lack of cooperation among organizations. Different organizations have come together to ensure this project turns out successfully. However, in case these organizations do not cooperate well, there is a possibility that the strategy will fail.

Managers are tasked with a heavy responsibility of making sure that this project is successful. Therefore, there are certain approaches that the managers can undertake to ensure the project is completed successfully. The first step is to provide quality services that would give them a competitive advantage over other companies. Secondly, the managers of these companies should build a good relationship to ensure proper cooperation. Thirdly, the managers responsible for this project should appropriately plan so that they can deal with any form of complexity that may result from the project.

References

Curran, S. J., Wagner, R. M., Graves, R. L., Keller, M., & Green, Jr, J. B. (2014). Well-to-wheelanalysis of direct and indirect use of natural gas in vehicles. Energy, 75, 194-203.Retrieved from https://www.sciencedirect.com/science/article/pii/S0360544214008573

Gullion, J. S. (2015). Fracking the Neighborhood: Reluctant activists and natural gas drilling.MIT Press.

Isoraite, M. (2014). Importance of strategic alliances in the company's activity. Retrieved fromhttps://repository.mruni.eu/handle/007/12100