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Module: Strategic MarketingInstructor: Bilal Ahmad
LECTURE: Strategic Relationship
Introduction
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Strategic relationships
StrategicRelationships
Suppliers
End-UserCustomers Intermediate
Customers
InternalPartners
StrategicAlliances
CompetitorsJointVentures
ExternalPartners
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Strategic Relationships
• The rationale for inter-organizational
relationships
• Forms of organizational relationships
• Managing inter-organizational
relationships
• Global relationships among organizations
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Rationale forForming Strategic
Relationships
Value-enhancingopportunities
Competitivestrategy
Skills andresourcegaps
Environmentalcomplexity
The rationale for inter-organizational relationships
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The rationale for inter-organizational relationships
• Opportunities to enhance value
• Environmental complexity
• Competitive strategy
• Skills and resource gaps– Technology constraints
– Financial constraints
– Market access
– Information technology
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The rationale for inter-organizational relationships
• 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?
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Firm
Supplierrelationships
Customerrelationships
Internalpartnerships
Lateralpartnerships
Forms of organizational relationships
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Forms of organizational relationships
• Supplier relationships– Strategic suppliers
– Outsourcing
• Intermediate customer relationships
• End-user customer relationships
• Strategic customers– Dominant customers
– Strategic account management
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Forms of organizational relationships
• Strategic alliances– Alliance success
– Alliance weaknesses
– Types of alliance
– Requirements for alliance success
– Alliance vulnerabilities
• Joint ventures
• Internal partnering
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Managing inter-organizational relationships
• Objective of the relationship
– New technologies and competencies
– Developing new markets and building market position
– Market selectivity
– Restructuring and cost reduction
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Managing inter-organizational relationships
• Relationship management– Planning
– Trust and self-interest
– Conflicts
– Leadership structure
– Flexibility
– Reputational Risk
– Cultural differences
– Technology transfer
– Learning from partner’s strengths
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Managing inter-organizational relationships
• 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
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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
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• Anticipating the future
– Boundaries and composition of Product market
– End-user customer base
– Market and industry transformation
– Potential threats
– Value chain composition and structure
– Product life cycle phase?
Strategic vision about future
