Howcan companies build strong customer relationships?

1. HOW CAN COMPANIES BUILD
STRONG CUSTOMER
RELATIONSHIPS

2. CLOSER RELATIONSHIS ARE
DRIVEN BY SUPPLY CHAIN
MANAGEMENT, EARLY SUPPLY
INVOLVEMENT AND
PURCHASING ALLIANCES

3. BENEFITS OF VERTICAL
COORDINATION
ENGAGINNG IN VERTICAL
COORDINATION B/W BUYERS AND
SELLERS CREATES VALUE FOR BOTH
MARKETING INSIGHT:ESTABLISH
COPORATE TRUST, CREDIBILITY&
REPUTATION

4. TYPES OF BYER SUPPLIER
RELATIONSHIPS:

5. BASIC BUYING AND SELLING
SIMPLE ROUTINE CHANGES WITH
MODERATE LEVEL OF COORDINATION

6. BARE BONES
MORE ADAPTATION BY THE SELLER AND
LESS COORDINATION BY THE BUYER

7. CONTRACTUAL TRANSACTION
FROMAL CONTRACTS WUITH LOW LEVEL
OF TRUST

8. CUTOMER SUPPLY
COMPETITIONRATHER THAN
COOPERATION IS THE FORM OF
GOVERNANCE

9. COOPERATIVE SYSTEMS
UNITED IN OPERATIONAL WAYS BUT
NEVER DEMONSTRATE STRUCTURAL
COMMITMENT THROUGH LEGAL
MEANS

10. COLLABORATIVE
TRUST AND COMMITMENT LEAD TO TRUE
PARTNERSHIP

11. MUTUALLY ADAPTIVE
BUYERS AND SELLERS MAKE RELATIONSHIP
SPECIFIC ADAPTATIONS

12. CUSTOMER IS THE KING
SELLER ADAPTS TO MEET THE CUSTOMER’S
NEED WITHOUT EXPECTING MUCH
ADAPTATION IN RETURN

13. Business risk and opportunism
Establishing a customer supplied
relationship creates tension between
safeguarding and adaptation

14. SPECIFIC INVESTMENTS ARE THOSE
TAILORED TO A PARTICULAR COMPANY
AND VALUE CHAIN PARTNER
A CONSIDERABLE RISK TO BOTH PARTIES
TRANSACTION THEORY STATES THAT AS
THE INVESTMENT IS SUNK , BOTH PARTIES
ARE LOCKED IN THE RELATIONSHIP

15. BUYER IS VULNERABLE CAUSE OF
SWITCHING COSTS
SELLER IS VULNERABLE DUE TO
DEDICATED ASSET KNOWLEDGE
HENCE AT TIMES OPPURTUNISM SNEAKS
IN
IT IS SOME FORM OF UNDERSUPPLY OR
CHEATING IMPLICIT OR EXPLICIT TO
CONTRACT

16. BENEFITS OF VERTICAL
COORDINATION
TYPES OF BYER SUPPLIER
RELATIONSHIPS
BUSINESS RISK AND
OPPORTUNISM
RISK MANAGEMENT
SUMMARY

17. THANK YOU
BY
YATIN ARORA
B.TECH STUDENT
DELHI TECHNOLOGICAL
UNIVERSITY