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Branding
Co-branding alliances serve to expand the strengths of two well-respected service providers and attract new business for both of them from markets that neither was previously able to tap alone. In that sense, co-branding is merely a specialized form of commercial alliance.
Promotion of Partner’s Mark
In successful co-branding agreements, the parties rejoice in success. But if that success promotes the goodwill of one party more than the other, in the long-term the relationship will terminate.
Loss from Partner’s Breach
The biggest risk of a co-branding involves reputational risk, since the loss of reputation may be expected to have a much greater negative impact upon a service provider than a particular unhappy customer. In a sense, loss of reputation can occur vicariously.
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