Strategic Alliances and Marketing Partnerships: Gaining Competitive Advantage through Collaboration and Partnering

240 Pages·2009·1.17 MB·English

by  Andrew Humphries

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Richard Gibbsis a recognized expert in “‘Partner or perish’ has been a recognized mantra at Xerox for many years, reflected in our S The pressures to compete in a global
T
marketing channels and has held senior partnerships with Fuji-Xerox, at PARC and many others; in today’s economic climate partnering is R economy force businesses to work
positions in major companies including Xerox ever more relevant and important. This book provides vital and practical understanding of how firms A collaboratively. While the rewards for
and Novell Inc. His PhD from the University of can optimize the quality of their collaboration with suppliers, channels, alliances and customers to T partnering can be greater in value than
E
Gloucestershire followed an MBA from achieve productive and effective partnerships. The Gibbs and Humphries Partnering Types represent G STRATEGIC those which a firm could accomplish
Henley Management College, and he an innovative perspective in the challenging environment of corporate organizational development I independently, many alliances fail, which
C
where it provides a powerful step forward in both management theory and technique.”
continues to conduct research into how firms suggests a lack of the necessary knowledge

Anne Mulcahy, Chairman and CEO, Xerox A
gain competitive advantage through and skills to establish a successful
L
marketing partnerships. L partnership.
“As the trend to outsourcing continues to grow, so too does the complexity of the supply/demand
I
A
network. The difference between success and failure in today’s marketplace is increasingly
Andrew Humphriesis currently CEO of N ALLIANCES Strategic Alliances and Marketing
determined by the way that the interfaces in these networks are managed. New ways of working
SCCI Ltd which specializes in measuring C Partnershipswill help you to understand
with supply chain partners are clearly required. In this original and thought-provoking book the
commercial relationship performance. E how partnerships function and how you can
authors provide practical guidance as to how relationships in the supply chain can be managed S
Following a career in the UK Royal Air Force & manage them more effectively and
more effectively.”
&
as Head of Defence Aviation Logistics, he efficiently. Based on solid research and
Professor Martin Christopher, Cranfield School of Management
gained a PhD from Cranfield School of M dealing with key topics such as supply chain
Management and an MBA from the Open management, marketing channels and
According to a recent study, most companies surveyed nowadays recognize that alliances are of very A MARKETING
University. high importance to the realization of their strategic objectives. However, the dramatically high failure R relationship management, it identifies the
rate of business partnering – estimated at over 50 per cent – suggests that companies often lack the K factors that determine partnering
skills and knowledge to determine the best strategic fit, negotiate win–win agreements, align E excellence. Whatever the nature of the
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organizational cultures and get people to work together productively. I relationship – outsourcing, strategic
N
alliances or co-manufacturing – there are
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Based on ground-breaking research Strategic Alliances and Marketing Partnershipsidentifies the key eight distinctive relationship types identified
factors that determine partnering excellence and will help you to optimize your business-to-business P PARTNERSHIPS by the authors to help managers optimize
partnerships. It will help you to understand how partnerships function and how you can manage them A business-to-business partnerships.
R
more effectively and efficiently – whatever the nature of the relationship. Using case studies it
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explores key topics including: N With case studies from prominent global
E organizations such as Wal-Mart, Toyota,
• the strategic value of partnering; R
General Motors and Dell, Strategic Alliances
• the evolution of supply chain networks, marketing channels and strategic alliances; S
and Marketing Partnershipswill help you to
• the obstacles and drivers of successful partnerships; H Gaining competitive advantage understand the problems that affect
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• relationship marketing; P
partnering and make effective decisions to
• understanding partnership and alliance dynamics; S
improve both the relationship and
• evaluating partnership performance. through collaboration and
productivity.
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Strategic Alliances and Marketing Partnershipsalso includes eight distinctive relationship types, A
NR partnering
defined by the authors, to help you to identify and assess the nature of your own partnerships, DI
RC
maximize their value and ensure their success. EH
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MI
PB
£30.00 HB
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US $49.95 I
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ISBN: 978-0-7494-5484-5
Kogan Page Kogan Page US
120 Pentonville Road 525 South 4th Street, #241
London N1 9JN Philadelphia PA 19147
United Kingdom USA 9 780749 454845
www.koganpage.com Business and management RICHARD GIBBS & ANDREW HUMPHRIES
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STRATEGIC
ALLIANCES
&
MARKETING
PARTNERSHIPS
Praise for Strategic Alliances and
Marketing Partnerships
“Gibbs and Humphries have gone further than any other authors in this
vexed area of ‘strategic partnering’. Along the way they have exploded
many myths, and got to the very essence of what works, when, and where.
Their original typology of partnering types will be a vital aid to managers
interested in understanding what is really happening in their supply
chains, and how to address emergent issues. This is a ‘must read’ for
those managers genuinely seeking to achieve and sustain higher levels of
performance in the enterprise supply chains in which they participate.”
Dr John Gattorna, author, Living Supply Chains,
and supply chain ‘Thought Leader’
“Marketing channels are critical to our business. Understanding the
dynamics of partnerships is a fundamental pre requisite. This book is
invaluable in describing the complex workings of marketing channel
partnerships, how to ‘weigh and measure’ them, identify corrective actions
and crucially how to develop and manage them successfully.”
Peter Ward, Vice President and General Manager, Xerox Europe
“This book explains the rational for working with marketing channels as
well as the underlying dynamics of channel partnering. It is more than just
a primer; it provides real insight and practical understanding to anyone
whose go to market strategy embraces alliances and channels. The clarity
of the explanations of complex themes and ideas is excellent, while the
partnership types represent a breakthrough in our understanding of
partners and how to manage and market to them.”
Michel Clement, Vice President, Oracle Europe
“These boys are on to something here. We all strive to exploit our
customer/supplier relationships but, human nature being what it is, we
tend to move in slow and incremental steps towards our shared goals
often challenged and delayed by mutual distrust and ignorance. The best
take bold and imaginative steps but even they need a handrail; this book
provides valuable insights into how partnerships can and should develop
coherently, logically and with all stakeholders engaged, to achieve that
goal of a true ‘win–win’ outcome.”
Air Vice-Marshal Matt Wiles CBE, Director General Joint Supply Chain,
UK Ministry of Defence
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STRATEGIC
ALLIANCES
&
MARKETING
PARTNERSHIPS
Gaining competitive advantage
through collaboration and
partnering
RICHARD GIBBS & ANDREW HUMPHRIES
London and Philadelphia
This book has been endorsed by the Institute of Directors.
The endorsement is given to selected Kogan Page books which the IoD recognises as
being of specific interest to its members and providing them with up-to-date, informative
and practical resources for creating business success. Kogan Page books endorsed by
the IoD represent the most authoritative guidance available on a wide range of subjects
including management, finance, marketing, training and HR.
The views expressed in this book are those of the authors and are not necessarily the
same as those of the Institute of Directors.
Publisher’s note
Every possible effort has been made to ensure that the information contained in this book
is accurate at the time of going to press, and the publishers and authors cannot accept
responsibility for any errors or omissions, however caused. No responsibility for loss or damage
occasioned to any person acting, or refraining from action, as a result of the material in this
publication can be accepted by the editor, the publisher or any of the authors.
First published in Great Britain and the United States in 2009 by Kogan Page Limited
Apart from any fair dealing for the purposes of research or private study, or criticism or review,
as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be
reproduced, stored or transmitted, in any form or by any means, with the prior permission in
writing of the publishers, or in the case of reprographic reproduction in accordance with the
terms and licences issued by the CLA. Enquiries concerning reproduction outside these terms
should be sent to the publishers at the undermentioned addresses:
120 Pentonville Road 525 South 4th Street, #241
London N1 9JN Philadelphia PA 19147
United Kingdom USA
www.koganpage.com
© Richard Gibbs and Andrew Humphries, 2009
The right of Richard Gibbs and Andrew Humphries to be identified as the author of this work
has been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
ISBN 978 0 7494 5484 5
British Library Cataloguing-in-Publication Data
A CIP record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Gibbs, Richard, 1955-
Strategic alliances and marketing partnerships : gaining competitive
advantage through collaboration and partnering / Richard Gibbs and
Andrew Humphries.
p. cm.
Includes index.
ISBN 978-0-7494-5484-5
1. Strategic alliances (Business) 2. Relationship marketing. 3.
Marketing. I. Humphries, Andrew, 1949- II. Title.
HD69.S8G53 2009
658'.046--dc22
2008039201
Typeset by JS Typesetting Ltd, Porthcawl, Mid Glamorgan
Printed and bound in India by Replika Press Pvt Ltd
Contents
About the authors ix
Foreword by Russell Peacock xi
Introduction: Placing a value on your key commercial
partnerships 1
1. The business of partnering 13
A crisis in management 13
Diminishing sources of competitive advantage 15
From product-base competition to knowledge-base
advantage 17
Extending the boundaries of the firm 19
The strategic value of partnering 22
Partnering and competing supply chains 28
The problems of understanding your partners 31
2. The evolution of partnership-driven business strategies 37
Introduction 37
The development of supply chain management 38
Supply chain networks 48
Strategic alliances 50
Marketing channels 52
Managing buy-sell relationships 57
Conclusion 63
3. The obstacles and drivers of successful partnerships 65
Introduction 65
vi Contents
Leveraging mutual investments 66
Learning from each other 71
Governance 74
The influence of leadership and control mechanisms 77
Understanding partnership performance 79
Proactive relationship management 85
Summary 89
4. Relationship marketing: a ‘new-old’ theory of business
relationships 91
Marketing foundations 91
Relationship marketing rediscovered 92
Collaborate or fail 94
From power management to relationship management 97
The relationship business 98
Modelling the marketing relationship 100
Managing partnership value 108
Building relationship management capabilities 110
Summary 111
5. Understanding partnership and alliance dynamics 115
Introduction 115
A ‘new economic’ view of partnerships 116
Partnerships as spiral dynamics 119
Finding the measure of partnership performance 122
Conclusion 141
6. Working hard at the ‘soft’ factors 143
Introduction 143
Evaluating partnership performance 144
Opportunities and challenges created through
collaborative innovation 148
Opportunities and challenges created through partnership
quality 153
Opportunities and challenges of creating value 157
The model of partnership performance 161
Summary 162
7. The Gibbs+Humphries Partnership Types 165
Introduction 165
Contents vii
Evangelists 166
Stable Pragmatists 171
Rebellious Teenagers 176
Evolving Pessimists 180
Captive Sharks 184
Cherry Pickers 188
No Can Dos 192
Deserters 196
Summary 199
8. Making partnerships and alliances work for you 203
Management implications 203
Determining the right partnership type 204
Partnership types and market development 210
Relationship management and the Gibbs+Humphries
Partnership Types 211
The Gibbs+Humphries Partnership Types and
marketing 219
Conclusion 223
Further reading 227
Index 229
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viii
About the authors
Richard Gibbs and Andrew Humphries have a unique mix of hands-
on experience and academic research and understanding.
Richard’s career spans senior sales and marketing positions in
major multinational companies such as Xerox and Novell Inc. Most
recently he was responsible for European distribution operations
at Xerox where he architected the transition from fragmented to
centralized distribution services and managed the dispersed account
team charged with managing established and new distributor rela-
tionships. He has also been responsible for European channel man-
agement, strategy planning and business management.
Richard’s business roles are reflected in his academic interests.
He has a PhD from the University of Gloucestershire where his
thesis investigated the importance of relationship marketing within
marketing channels and strategic alliances. Richard has an MBA from
Henley Management College and is continuing his research into
various aspects of inter-organizational relationships within Europe,
specifically addressing how firms can gain competitive advantage
through their marketing channels.
Andrew completed a 34-year career in the Royal Air Force culmin-
ating as Head of UK Defence Aviation Logistics. He founded SCCI
Ltd, a company located in Milton Keynes, UK that specializes in
measuring the effectiveness of and diagnosing the improvement
opportunities in collaborative business relationships. His technique
successfully helped to increase customer/supplier loyalty, revitalize
troubled partnerships and provide performance metrics for improved
governance in rail, construction, manufacturing, retail, agriculture
and defence sector organizations.