Strategic Marketing

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
 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
 Strategic relationships
End-User
Customers Intermediate
Suppliers
Customers

Joint Strategic Competitors

Ventures Relationships

Strategic Internal
Alliances External Partners
Partners
 Strategic Relationships
• The rationale for interorganizational
relationships
• Forms of organizational relationships
• Managing interorganizational relationships
• Global relationships among organizations
 The rationale for interorganizational relationships

Value-enhancing
opportunities

Rationale for
Skills and Environmental
Forming Strategic
resource complexity
gaps Relationships

Competitive
strategy
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
 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
 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
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?
 Mapping the Path to Market Leadership

Market-Oriented
Culture and
Process

Superior
Organizational Relationship Customer
Change Strategies Value
Proposition

Positioning
with Distinctive
Competencies
 Forms of organizational relationships
Supplier
relationships

Internal Firm Lateral

partnerships partnerships

Customer
relationships
 Illustrative interorganizational relationships
Strategic Alliance

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

EU
 Forms of organizational relationships (1)

• Supplier relationships
– Strategic suppliers
– Outsourcing
• Intermediate customer relationships
• End-user customer relationships
• Strategic customers
– Dominant customers
– Strategic account management
 Forms of organizational relationships (2)
• Strategic alliances
– Alliance success
– Alliance weaknesses
– Types of alliance
– Requirements for alliance success
– Alliance vulnerabilities
• Joint ventures
• Internal partnering
 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
 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
 Managing interorganizational relationships (2)

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