The term ‘industrial backing or “industrial partnership’ refers to the strategy by which a company positions itself by partnering with another company. This approach aims to strengthen its market position, improve operational efficiency, gain access to new markets or technologies and accelerate its development. Industrial backing is often recommended for start-ups.
Industrial backing can occur in various ways:
- Mergers and acquisitions: A company may merge with another company or acquire a company to consolidate its development and internationalize its activities.
- Strategic partnerships: Companies can establish partnerships with other companies to share resources, complement technologies or enhance skills.
- Vertical integration: A company may decide to enhance its value chain by acquiring businesses that provide distributors or sales channels, either nationally or for export.
- Outsourcing: Sometimes, a company may choose to disengage from certain non-core activities by outsourcing them to specialized companies.
The main objective of industrial and financial backing is to strengthen the competitiveness and stability of the company in its market by leveraging synergies between the involved entities. This can also help the company better withstand market fluctuations and competitive pressures.