Transcript The rationale for interorganizational relationships

Strategic Marketing
1. Imperatives for Market-Driven Strategy
2. Markets and Competitive Space
3. Strategic Market Segmentation
4. Strategic Customer Relationship Management
5. Capabilities for Learning about Customers and Markets
6. Market Targeting and Strategic Positioning
7. Strategic Relationships
8. Innovation and New Product Strategy
9. Strategic Brand Management
10. Value Chain Strategy
11. Pricing Strategy
12. Promotion, Advertising and Sales Promotion
Strategies
13. Sales Force, Internet, and Direct Marketing Strategies
14. Designing Market-Driven Organizations
15. Marketing Strategy Implementation And Control
Chapter 7
Strategic
Relationships
McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Strategic relationships at IBM
* Collaborative projects across all major parts of
business services
* Funding universities in services science
* Partnership with Sony and Toshiba to produce new
processor
* Computer code shared with Apache open-source
web-server
* IBM programmers work on Linux projects
* Collaborating with customers and competitors to
invent new technologies
* Strategy of openess
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Strategic relationships
End-User
Customers
Suppliers
Intermediate
Customers
Strategic
Relationships
Joint
Ventures
Strategic
Alliances
External
Partners
Competitors
Internal
Partners
7-4
Strategic Relationships
* The rationale for interorganizational
relationships
* Forms of organizational relationships
* Managing interorganizational
relationships
* Global relationships among
organizations
7-5
The rationale for interorganizational relationships
Value-enhancing
opportunities
Skills and
resource
gaps
Rationale for
Forming Strategic
Relationships
Environmental
complexity
Competitive
strategy
7-6
The rationale for interorganizational relationships (1)
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Opportunities to enhance value
Environmental complexity
Competitive strategy
Skills and resource gaps
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Technology constraints
Financial constraints
Market access
Information technology
7-7
Collaborations in open-source software
* IBM and Sun aggressive supporters of
Linux open-source software
* Technology sharing and partnerships
* Rebuilding the technology
“ecosystem”
* Reducing dependence on Microsoft
7-8
Airline Alliances
* Major global alliances
* Oneworld
* Skyteam
* Star Alliance
* Contain 18 of the world’s largest airline
* Account for 60% of total world airline
capacity
* But a history of alliance failures and
desertions
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The rationale for interorganizational relationships (2)
* Evaluating the potential for
collaboration
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What is the strategy?
The costs of collaboration
Is relationship strategy essential?
Are good candidates available?
Do relationships fit our culture?
7-10
Mapping the Path to Market Leadership
Market-Oriented
Culture and
Process
Organizational
Change
Relationship
Strategies
Superior
Customer
Value
Proposition
Positioning
with Distinctive
Competencies
7-11
Forms of organizational relationships
Supplier
relationships
Internal
partnerships
Firm
Lateral
partnerships
Customer
relationships
7-12
Illustrative interorganizational relationships
Strategic Alliance
Supplier/
Manufacturer
Collaboration
M
M
M
M
JV
Joint Venture
W
R
Distribution
Channel
Relationship
EU
7-13
Forms of organizational relationships (1)
* Supplier relationships
* Strategic suppliers
* Outsourcing
* Intermediate customer relationships
* End-user customer relationships
* Strategic customers
* Dominant customers
* Strategic account management
7-14
Forms of organizational relationships (2)
* Strategic alliances
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*
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*
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Alliance success
Alliance weaknesses
Types of alliance
Requirements for alliance success
Alliance vulnerabilities
* Joint ventures
* Internal partnering
7-15
CostCo Versus Wal-Mart
* CostCo has achieved major position in U.S.
warehouse club business against strong
competitors
* Success based on customer choice and
constant innovation and productivity
improvement
* CostCo compensates employees more
generously than competitors - to motivate
and retain good workers - they get lower
staff turnover and higher productivity
7-16
Managing interorganizational relationships (1)
* Objective of the relationship
* New technologies and competencies
* Developing new markets and building
market position
* Market selectivity
* Restructuring and cost reduction
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Managing interorganizational relationships (2)
* Relationship management
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Planning
Trust and self-interest
Conflicts
Leadership structure
Flexibility
Cultural differences
Technology transfer
Learning from partner’s strengths
7-18
Managing interorganizational relationships (3)
* Partnering capabilities
* Control, evaluation and review
* Exiting from alliance
* Identify/agree what triggers exit
* Detail rights of each partner to
assets/products
* Design disengagement process
* Communication plan for all involved
parties
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Managing Interorganizational relationships
Objective
of the
Relationship
Control and
Evaluation
Relationship
Management
Partnering
Capabilities
Managing
Inter-Organizational
Relationships
Exiting from
Alliance
7-20
Global relationships among organizations
* The Global Integrated Enterprise
* Inter-nation collaborations
* The strategic role of government
* Government interventions
* Competing with state-owned enterprises
* Collaborating with state-owned
enterprises
* Government regulation
7-21