Chapter 7 Strategic Relationships

Transcription

1 Chapter 7 Strategic Relationships The rationale relationships for interorganizational Types of organizational relationships Developing effective between organizations relationships Global relationships organizations among 1 MAR608 Strategic Relationships 2 MAR608 1

2 Mapping the Path to Market Leadership Market-Oriented Culture and Process Organizational Change Relationship Strategies Positioning with Distinctive Competencies Superior Customer Value Proposition 3 MAR608 Strategic Relationships Between Various Organizations Channel Member Competitor Company Customer Supplier 4 MAR608 2

3 Skills and Resource Gaps Drivers of Interorganizational Relationships Opportunities to Enhance value THE RATIONALE Competitive Strategy Environmental Turbulence and Diversity (complexity) 5 MAR608 Illustrative Inter-Organizational Relationships Strategic Alliance Supplier/ Manufacturer Collaboration M M W R M JV Joint Venture Distribution ib ti Channel Relationship M EU 6 MAR608 3

4 Growth in Strategic Relationships By 2001, the top 500 global businesses had 60 major strategic allainces each By end of 1990s, U.S. alliances had grown more than 25 percent annually for previous 5 years Accenture suggests nearly one-third of companies expect alliances to account for more than one-third of market value by mid-2000s Reliance on alliances is high (20-30% of revenue) in U.S. and European companies 7 MAR608 The Logic of Collaboration What is the strategy? Is partnering a promising strategy? What are the costs of collaboration? How essential is the relationship strategy? Are good candidates available? Do relationships fit our culture? 8 MAR608 4

5 Types of Organizational Relationships Internal Partnerships Business Units Employees Functional Departments Supplier Partnerships Goods Suppliers Focal Firm Services Suppliers Lateral Partnerships Competitors Nonprofit Organizations Government Intermediate Ultimate Customers Customers Buyer Partnerships Source: Robert M. Morgan and Shelby D. Hunt, The Commitment - Trust Theory of Relationship Marketing, Journal of Marketing, July 1994, MAR608 Illustrative Partnering with Customers Company/Brand Boeing (commercial aircraft) Customer Partner Involving airlines in design of Boeing 777 Harley-Davidson (motorcycles) Harley Owners Group with over 100,000 members Marriott (hotels) Partnering with corporate customers System Soft (PC Card software) Partnering with PC makers and Intel 10 MAR608 5

6 Strategic Alliances Success of alliances failures in logic failures in process Types of alliances Alliance success requirements Alliance vulnerabilities 11 MAR608 Motives Underlying Entry of Firms into Strategic Alliances Market entry and market positionrelated motives Product-related motives Product/market-related motives Market structure modification-related motives Market entry timing-related motives Resource extension- and risk-reduction related motives Skills enhancement-related motives Source: P. Rajan Varadarajan and Margaret H. Cunningham, Strategic Alliances: A Synthesis of Conceptual Foundations, Journal of the Academy of Marketing Science, Fall 1995, MAR608 6

7 Relationship Management Guidelines Planning Trust/Self Interest Conflicts Leadership Flexibility Cultural Differences Technology Transfer Learning from partner s strengths 13 MAR608 How Strategic Relationships Enhance Value Improved market vision and learning by pooling the knowledge and experience of the partners Enhanced customer value by integrating the partner s unique competencies Joint analysis of what is required to create superior customer value for specific market segments Capitalizing on value migration opportunities that are not feasible for a single organization Reforming organization structure to gain efficiencies and greater adaptability to change 14 MAR608 7

8 Strategic Relationship Issues The role of strategic relationships in market-driven strategy Moving from hierarchies to process driven structures Fit of relationship strategy with organizational design Marketing and organizational change 15 MAR608 Global Relationships Among Organizations Types of global organizations the network corporation trading companies The strategic role of government single nation partnership multiple nation partnership government corporations government legislation Review Question List the types of organizational relationships and the motives underlying entry of firms into strategic alliances. 16 MAR608 8