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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


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

Joint Ventures Strategic Alliances

Intermediate Customers Competitors

Strategic Relationships
External Partners Internal 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

Skills and resource gaps

Rationale for Forming Strategic Relationships

Environmental complexity

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 worlds 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

Organizational Change

Relationship Strategies

Superior Customer Value Proposition

Positioning with Distinctive Competencies


Forms of organizational relationships

Supplier relationships

Internal partnerships


Lateral partnerships

Customer relationships


Illustrative interorganizational relationships

Strategic Alliance Supplier/ Manufacturer Collaboration M M M M

JV Joint Venture


Distribution Channel Relationship


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 partners 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

Partnering Capabilities

Managing Inter-Organizational Relationships

Exiting from Alliance


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