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Strategic Relationship Chapter 7
Strategic Relationship Chapter 7
Strategic Relationship Chapter 7
PIERCY
8/e
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
7-2
Chapter Seven
Strategic
Relationships
Strategic
Relationships
Strategic
Relationships
7-5
Market-Oriented
Culture and
Process
Superior
Organizational Relationship Customer
Change Strategies Value
Proposition
Positioning
with Distinctive
Competencies
Strategic
7-6
Relationships Between
Various Organizations
Channel
Competitor
Member
Company
Customer Supplier
7-7
Drivers of
Interorganizational
Relationships
Value Enhancing
Opportunities
THE RATIONALE
Organizational
Relationships
Strategic Alliance
M M M
Supplier/
Manufacturer
Collaboration
M
JV
Joint Venture
W
Distribution
Channel
Relationship
R
EU
7-9
Growth in Strategic
Relationships
The Logic of
Collaboration
Is partnering a promising
strategy?
How essential is the
relationship strategy?
Are good candidates
available?
Do relationships fit our
culture?
Types of Organizational
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Relationships
Supplier Partnerships
Goods Services
Internal Suppliers Suppliers
Lateral
Partnerships Partnerships
Business
Units Competitors
Nonprofit
Employees Focal Organizations
Functional Firm
Departments
Government
Intermediate Ultimate
Customers Customers
Buyer Partnerships
Source: Robert M. Morgan and Shelby D. Hunt, “The Commitment - Trust Theory of Relationship Marketing,”
Journal of Marketing, July 1994, 21.
7-12
Illustrative Partnering
with Customers
Strategic
Alliances
Success of alliances
– failures in logic
– failures in process
Kinds of alliances
Alliance success
requirements
Alliance vulnerabilities
Motives Underlying
7-14
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.
Relationship
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Management
Guidelines
Planning
Trust/Self Interest
Conflicts
Leadership
Flexibility
Technology
Transfer
Learning
7-16
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
Strategic
7-17
Relationship
Issues
The role of strategic
relationships in market-driven
strategy
Global Relationships
Among Organizations
Types of global organizations
– the network corporation
– trading companies
The strategic role of
government
– single nation partnership
– multiple nation partnership
– government corporations
– government legislation