PowerPoint Presentation7-*
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Strategic
Relationships
Types of organizational relationships
Global relationships among organizations
Market-Oriented
Channel
Member
Competitor
Company
Customer
Supplier
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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
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How essential is the relationship strategy?
Are good candidates available?
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Buyer Partnerships
Source: Robert M. Morgan and Shelby D. Hunt, “The Commitment - Trust Theory of Relationship Marketing,”
Journal of Marketing, July 1994, 21.
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Customer Partner
Involving airlines
Partnering with corporate customers
Market entry and market position-related motives
Product-related motives
Product/market-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.
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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
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Moving from hierarchies to process driven structures
Fit of relationship strategy with organizational design
Marketing and organizational change
single nation partnership
multiple nation partnership