Advantages of Partnership:
- Partnership increases resource availability, improves decision-making, and reduces risks in business operations.
- Shared resources, expertise, networks, collaboration, innovation, accountability, and synergy are key elements of a partnership that increase business performance.
- In partnership, both partners can boost market entry through combined brand recognition.
- It helps to improve the efficiency of supply chain management by using shared logistics.
- It also increases product diversity with joint development efforts.
- In partnership, they can have a competitive advantage through unique partner synergies.
- It also helps to improve employee development through cross-company training programs.
- They can increase adaptability with different strategic approaches.
Disadvantages of Partnership:
- There are chances of conflicts between partners due to different opinions and goals.
- Shared profits in partnerships can reduce individual financial gain.
- Sometimes decision-making may be slower due to a necessary consensus.
- Both partners are liable for business debts and obligations.
- The unequal workload distribution among partners may cause dissatisfaction among them.
- It becomes difficult to dissolve the partnership.
Summary:
| Advantages | Disadvantages |
| Increases resource availability | Conflicts between partners |
| Improves decision-making | Shared profits reduce gains |
| Reduces risks | Slower decision-making |
| Boosts market entry | Shared liabilities |
| Enhances product diversity | Unequal workload distribution |
| Provides competitive advantage | Difficult to dissolve |