•The formation of strategic relationships among suppliers, producers, distribution channel organizations and customers (intermediate customers and end users).
•The goal may be gaining access to markets, enhancing value offerings, reducing the risks caused by rapid environmental change, sharing complementary skills, acquiring new knowledge, building assigned close relationships with major customers, or obtaining resources beyond those available to a single company.
•Strategic relationships of these kinds are escalating in importance because of realities such as the environmental complexity and risks of a global economy, the skill and resource limitations of a single organization and the power of major customer to insist on collaborative relationships with their strategic supplier. •Strategic alliances, joint ventures, and strategic account collaborations are example of cooperative relationships between independent firms.
The Rationale for Inter organizational Relationships
DRIVERS OF INTERORGANIZATIONAL RELATIONSHIPS
The Various drivers of relationship fall into four broad categories:
•Opportunities to enhance value by combining the competencies of two or more organizations.
•Environmental complexity
•Competitive strategy
•Skills and resource gaps.
Evaluating the potential for collaboration
Collaborative may include shared activities such as product and process design, cooperative marketing programs, applications assistance, long-term supply contracts and just-in-time inventory programs.
What is the strategy?
The costs of collaboration
Is relationship strategy essential?
Are good candidates available?
Do relationships fit our culture?
Forms of organizational relationship
•Supplier relationships
•Strategic suppliers
•Outsourcing
Intermediate customer’s relationship
End – User Customer Relationships
Strategy customers
Dominant customers
Strategic account management
Strategic Alliances
Alliance success
.
Alliance weaknesses
Types