Collaborative Relationship

Collaborative Relationships The accelerating rate of technological progress, market demand created by global industrialization, and the creation of new middle classes will result in tremendous potential in global markets. Although global markets offer tremendous potential, companies seeking to function effectively in a fragmented global market of five billion people are being forced to stretch production, design engineering, and marketing resources and capabilities because of the intensity of competition and the increasing pace of technology. These collaborative relationships are a mind-set characterizing an approach to management that can be described as relationship exchanges. Relational exchanges occur; internally among functional departments, business units, subsidiaries, and employees and externally among customers, suppliers of goods and services, competitors, government agencies, and related businesses where mutually beneficial goal is sought. Two broad categories of collaborative relationship: relationship marketing- those relationships that focus on the marketing process; and strategic business alliances- those relationships that encompass the other activities of the business enterprise.
Relationship Marketing- Relationship marketing is the category of collaborative relationship that focuses on the marketing process. Like all relational collaborations, relationship marketing has as its focus the creation, development, and support of successful relational exchanges throughout the marketing process. The ultimate goal is to achieve a competitive advantage by establishing long-term, mutually beneficial associations with loyal, satisfied customers.
Strategic International Alliances (SIA) - SIAs, the other category of collaborative relationships, are sought as a way to shore up weaknesses and increase competitive strengths. Opportunities for rapid expansion into new markets, access to new technology, more efficient