Strategic Relationships
Strategic Relationships
Strategic Relationships
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
7-3
Strategic relationships
End-User
Customers Intermediate
Suppliers
Customers
Strategic Internal
Alliances External Partners
Partners
7-4
Strategic Relationships
* The rationale for interorganizational
relationships
* Forms of organizational relationships
* Managing interorganizational
relationships
* Global relationships among
organizations
7-5
The rationale for interorganizational relationships
Value-enhancing
opportunities
Rationale for
Skills and Environmental
Forming Strategic
resource complexity
gaps Relationships
Competitive
strategy
7-6
The rationale for interorganizational relationships (1)
7-7
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
7-8
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
7-9
The rationale for interorganizational relationships (2)
7-10
Mapping the Path to Market Leadership
Market-Oriented
Culture and
Process
Superior
Organizational Relationship Customer
Change Strategies Value
Proposition
Positioning
with Distinctive
Competencies
7-11
Forms of organizational relationships
Supplier
relationships
Customer
relationships
7-12
Illustrative interorganizational relationships
Strategic Alliance
M M M
Supplier/
Manufacturer
Collaboration M JV
Joint Venture
W
Distribution
Channel
R Relationship
EU
7-13
Forms of organizational relationships (1)
* Supplier relationships
* Strategic suppliers
* Outsourcing
* Intermediate customer relationships
* End-user customer relationships
* Strategic customers
* Dominant customers
* Strategic account management
7-14
Forms of organizational relationships (2)
* Strategic alliances
* Alliance success
* Alliance weaknesses
* Types of alliance
* Requirements for alliance success
* Alliance vulnerabilities
* Joint ventures
* Internal partnering
7-15
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
7-16
Managing interorganizational relationships (1)
7-17
Managing interorganizational relationships (2)
* Relationship management
* Planning
* Trust and self-interest
* Conflicts
* Leadership structure
* Flexibility
* Cultural differences
* Technology transfer
* Learning from partner’s strengths
7-18
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
7-19
Managing Interorganizational relationships
Objective
of the
Relationship
Control and
Evaluation
Relationship
Management
Managing
Inter-Organizational Exiting from
Relationships Alliance
Partnering
Capabilities
7-20
Global relationships among organizations
7-21