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7-1
Strategic
Relationships
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
7-2
Strategic
Relationships
 The rationale for
interorganizational
relationships
 Types of organizational
relationships
...
7-3
Strategic
Relationships
7-4
Mapping the Path to
Market Leadership
Market-Oriented
Culture and
Process
Superior
Customer
Value
Proposition
Position...
7-5
Strategic
Relationships Between
Various Organizations
Channel
Member
Competitor
Company
Customer Supplier
7-6
Drivers of
Interorganizational
Relationships
THE RATIONALE
Value Enhancing
Opportunities
Skill and
Resource Gaps
Envir...
7-7
Growth in Strategic
Relationships
 By 2001, the top 500 global businesses
had 60 major strategic allainces each
 By ...
7-8
The Logic of
Collaboration
 Is partnering a promising
strategy?
 How essential is the
relationship strategy?
 Are g...
7-9
Types of Organizational
Relationships
Focal
Firm
Employees
Functional
Departments
Goods
Suppliers
Services
Suppliers
C...
7-10
Illustrative Partnering
with Customers
Company/Brand
Boeing (commercial
aircraft)
Harley-Davidson
(motorcycles)
Marri...
7-11
Strategic
Alliances
 Success of alliances
– failures in logic
– failures in process
 Kinds of alliances
 Alliance ...
7-12
Motives Underlying
Entry of Firms into
Strategic Alliances
 Market entry and market
position-related motives
 Produ...
7-13
Relationship
Management
Guidelines
Planning
Trust/Self Interest
Conflicts
Leadership
Flexibility
Technology
Tra...
7-14
How Strategic
Relationships Enhance
Value
 Improved market vision and
learning by pooling the knowledge
and experien...
7-15
Strategic
Relationship
Issues
 The role of strategic
relationships in market-
driven strategy
 Moving from hierarch...
7-16
Global Relationships
Among Organizations
 Types of global organizations
– the network corporation
– trading companie...
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Strategic Relationships

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Strategic Relationships

  1. 1. 7-1 Strategic Relationships McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
  2. 2. 7-2 Strategic Relationships  The rationale for interorganizational relationships  Types of organizational relationships  Developing effective relationships between organizations  Global relationships among organizations
  3. 3. 7-3 Strategic Relationships
  4. 4. 7-4 Mapping the Path to Market Leadership Market-Oriented Culture and Process Superior Customer Value Proposition Positioning with Distinctive Competencies Relationship Strategies Organizational Change
  5. 5. 7-5 Strategic Relationships Between Various Organizations Channel Member Competitor Company Customer Supplier
  6. 6. 7-6 Drivers of Interorganizational Relationships THE RATIONALE Value Enhancing Opportunities Skill and Resource Gaps Environmental Turbulence and Diversity
  7. 7. 7-7 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
  8. 8. 7-8 The Logic of Collaboration  Is partnering a promising strategy?  How essential is the relationship strategy?  Are good candidates available?  Do relationships fit our culture?
  9. 9. 7-9 Types of Organizational Relationships Focal Firm Employees Functional Departments Goods Suppliers Services Suppliers Competitors Nonprofit Organizations Government Ultimate Customers Intermediate Customers Business Units Supplier Partnerships Internal Partnerships Lateral Partnerships Buyer Partnerships Source: Robert M. Morgan and Shelby D. Hunt, “The Commitment - Trust Theory of Relationship Marketing,” Journal of Marketing, July 1994, 21.
  10. 10. 7-10 Illustrative Partnering with Customers Company/Brand Boeing (commercial aircraft) Harley-Davidson (motorcycles) Marriott (hotels) System Soft (PC Card software) Customer Partner Involving airlines in design of Boeing 777 Harley Owners Group with over 100,000 members Partnering with corporate customers Partnering with PC makers and Intel
  11. 11. 7-11 Strategic Alliances  Success of alliances – failures in logic – failures in process  Kinds of alliances  Alliance success requirements  Alliance vulnerabilities
  12. 12. 7-12 Motives Underlying Entry of Firms into Strategic Alliances  Market entry and market position-related 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, 285.
  13. 13. 7-13 Relationship Management Guidelines Planning Trust/Self Interest Conflicts Leadership Flexibility Technology Transfer Learning
  14. 14. 7-14 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
  15. 15. 7-15 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
  16. 16. 7-16 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

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