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

Strategic Relationships 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 Customers Suppliers Joint Ventures Strategic Relationships Competitors Strategic Alliances Internal Partners External 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 Forming Strategic Relationships Skills and resource gaps 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 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 Customer Value Proposition Organizational Change Relationship Strategies Positioning with Distinctive Competencies

Forms of organizational relationships Supplier relationships Internal partnerships Lateral partnerships Firm Customer relationships

Illustrative interorganizational relationships Strategic Alliance M M M Supplier/ Manufacturer Collaboration M JV Joint Venture W Distribution Channel Relationship R 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 Relationships Exiting from 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