Chapter 7

Strategic
Relationships

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
*
*
* 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
1-2
*
*
* Strategic relationships
End-User
Customers Intermediate
Suppliers
Customers

Joint Strategic Competitors

Ventures Relationships

Strategic Internal
Alliances External Partners
Partners

1-3
*
*
* Strategic Relationships
* The rationale for interorganizational
relationships
* Forms of organizational relationships
* Managing interorganizational
relationships
* Global relationships among
organizations

1-4
*
*
* The rationale for interorganizational relationships

Value-enhancing
opportunities

Rationale for
Skills and Environmental
Forming Strategic
resource complexity
gaps Relationships

Competitive
strategy

1-5
*
*
*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

1-6
*
*
* 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

1-7
*
*
* 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

1-8
*
*
*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?

1-9
*
*
* Mapping the Path to Market Leadership
Market-Oriented
Culture and
Process

Superior
Organizational Relationship Customer
Change Strategies Value
Proposition

Positioning
with Distinctive
Competencies

1-10
*
*
* Forms of organizational relationships
Supplier
relationships

Internal Firm Lateral

partnerships partnerships

Customer
relationships

1-11
*
*
* Illustrative interorganizational relationships
Strategic Alliance

M M M
Supplier/
Manufacturer
Collaboration M JV
Joint Venture
W
Distribution
Channel
R Relationship

EU
1-12
*
*
* Forms of organizational relationships (1)

* Supplier relationships
* Strategic suppliers
* Outsourcing
* Intermediate customer relationships
* End-user customer relationships
* Strategic customers
* Dominant customers
* Strategic account management
1-13
*
*
* Forms of organizational relationships (2)

* Strategic alliances
* Alliance success
* Alliance weaknesses
* Types of alliance
* Requirements for alliance success
* Alliance vulnerabilities
* Joint ventures
* Internal partnering

1-14
*
*
* 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

1-15
*
*
* 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

1-16
*
*
* Managing interorganizational relationships (2)

* Relationship management
* Planning
* Trust and self-interest
* Conflicts
* Leadership structure
* Flexibility
* Cultural differences
* Technology transfer
* Learning from partner’s strengths
1-17
*
*
* 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
1-18
*
* Managing Interorganizational relationships
* Objective
of the
Relationship
Control and
Evaluation
Relationship
Management
Managing
Inter-Organizational Exiting from
Relationships Alliance
Partnering
Capabilities

1-19
*
*
* 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

1-20