Managing Relationships in

B2B Markets
CHAPTER FIVE
Chapter Objectives
• Understand and explore the stages of B2B relationships
• Examine various forms of B2B relationships and partnerships,
along with their distinctive characteristics.
• Analyze the motives driving strategic partnerships and
alliances in B2B markets
“No Business is an Island”
Relationship Stages
1) Relationship Initiation:
• Identifying Potential Partners
• Establish initial connections
2) Relationship Development:
• Cultivating trust and open
communication
• Collaboration and mutual benefits
3) Relationship Termination
Forms of B2B Relationships and Partnerships
• Strategic alliance: arrangement between two or more
organizations to pursue agreed-upon objectives while
remaining independent.

• Joint venture: involves two or more organizations Microsoft and

each contributing to the creation of a new entity. General Electric
Forms of B2B Relationships and Partnerships

• Co-opetition: is the act of cooperation between

competing companies.

• Co-branding is a collaboration between two or more brands to

create a product or service together.
Motives for strategic partnerships and alliances
• Access to new resources and capabilities:
• Expertise and technology
• Customer base and distribution channels
• Financial resources
• Foster joint research and development
• Greater market power and bargaining leverage with suppliers and
customers
• Risk sharing
• Learning and knowledge sharing
• 30% of business partnership and alliances are not successful

• Tesla and Panasonic formed a

strategic alliance to build
Gigafactories for battery production.

• Starbucks-United Airlines alliance has resulted

in their coffee being offered on flights with the
Starbucks logo on the cups.
• Suzuki and VW formed a strategic
partnership in 2009 with the aim of
utilizing:
• Suzuki's knowledge of the small-car
industry and its dominance in the
Indian market.
• VW brought its technological might
and worldwide reach to the table.
• Despite its promising potential,
ultimately failed…
Why alliances and joint ventures fail?

• Partner compatibility
• Cultural differences
• Lack of trust and commitment
• Misalignment of goals and objectives
• Inadequate communication and collaboration
• Unforeseen external factors
Chapter Review Exercise
Summary
• Three stages of relationship management: initiation, development, and
termination.
• Various forms of B2B relationships and partnerships are explored, including
strategic alliances, joint ventures, co-opetition, and co-branding, each offering
unique opportunities for collaboration.
• Motives for strategic partnerships are outlined, including access to resources,
market power, risk sharing, and learning.
• Common reasons for failure, such as partner compatibility, cultural differences,
and inadequate communication.