This document discusses strategic relationships between organizations. It covers the rationale for forming interorganizational relationships, including opportunities to enhance value, address environmental complexity and skills/resource gaps. It also describes different forms of organizational relationships such as supplier relationships, strategic alliances, joint ventures and internal partnerships. Finally, it outlines factors for managing interorganizational relationships effectively such as objectives, relationship management, partnering capabilities, control and evaluation, and exiting alliances.

1. 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
Strategic Marketing

2. Strategic
Relationships
Chapter 7
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

3. 7-3
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

4. 7-4
Strategic relationships
Strategic
Relationships
Suppliers
End-User
Customers Intermediate
Customers
Internal
Partners
Strategic
Alliances
CompetitorsJoint
Ventures
External
Partners

5. 7-5
Strategic Relationships
* The rationale for interorganizational
relationships
* Forms of organizational relationships
* Managing interorganizational
relationships
* Global relationships among
organizations

6. 7-6
Rationale for
Forming Strategic
Relationships
Value-enhancing
opportunities
Competitive
strategy
Skills and
resource
gaps
Environmental
complexity
The rationale for interorganizational
relationships

7. 7-7
The rationale for interorganizational
relationships (1)
* Opportunities to enhance value
* Environmental complexity
* Competitive strategy
* Skills and resource gaps
* Technology constraints
* Financial constraints
* Market access
* Information technology

8. 7-8
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

9. 7-9
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

10. 7-10
The rationale for interorganizational
relationships (2)
* Evaluating the potential for
collaboration
* What is the strategy?
* The costs of collaboration
* Is relationship strategy essential?
* Are good candidates available?
* Do relationships fit our culture?

11. 7-11
Mapping the Path to Market
Leadership
Market-Oriented
Culture and
Process
Superior
Customer
Value
Proposition
Positioning
with Distinctive
Competencies
Relationship
Strategies
Organizational
Change

12. 7-12
Firm
Supplier
relationships
Customer
relationships
Internal
partnerships
Lateral
partnerships
Forms of organizational relationships

13. 7-13
Illustrative interorganizational
relationships
Strategic Alliance
Joint Venture
Supplier/
Manufacturer
Collaboration
Distribution
Channel
Relationship
MM
W
R
EU
M
M JV

14. 7-14
Forms of organizational relationships (1)
* Supplier relationships
* Strategic suppliers
* Outsourcing
* Intermediate customer relationships
* End-user customer relationships
* Strategic customers
* Dominant customers
* Strategic account management

15. 7-15
Forms of organizational relationships (2)
* Strategic alliances
* Alliance success
* Alliance weaknesses
* Types of alliance
* Requirements for alliance success
* Alliance vulnerabilities
* Joint ventures
* Internal partnering

16. 7-16
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

17. 7-17
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

18. 7-18
Managing interorganizational
relationships (2)
* Relationship management
* Planning
* Trust and self-interest
* Conflicts
* Leadership structure
* Flexibility
* Cultural differences
* Technology transfer
* Learning from partner’s strengths

19. 7-19
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

20. 7-20
Managing
Inter-Organizational
Relationships
Objective
of the
Relationship
Relationship
Management
Partnering
Capabilities
Control and
Evaluation
Exiting from
Alliance
Managing Interorganizational relationships

21. 7-21
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