Marketing Strategy and Competitive Positioning pdf ebook

CHAPTER 15 STRATEGIC ALLIANCES AND NETWORKS
disaggregation’. The network is a flat organisational form, involving interaction between 
network partners rather than the multi-layered functions of the traditional hierarchical 
organisation. In fact, dramatic changes have taken place in the traditional hierarchical 
forms of organisations as a result of alliance and network strategies. Although in some 
ways similar to channel of distribution networks (such as suppliers/producers, market-
ing intermediaries and end-users), network organisations may display both horizontal and 
vertical structures (for example, collaborations between suppliers as well as supply-chain 
linkages). Moreover, networks are frequently complex and liable to change more frequently 
than traditional distribution channels. 
Typically, network operations are guided by sophisticated information and decision sup-
port systems, often global in their scope, which perform many of the command and control 
functions of the traditional hierarchical organisation. The resulting network is flexible and 
adaptable to change, and the more successful network designs are customer driven – guided 
by the needs and preferences of buyers – but may be complex and unfamiliar to executives. 
The inter-organisational ties in a network may span organisations from suppliers to 
end-users, and/or actual or potential competitors. The network may also include service 
agencies, such as advertising, research, consulting services and distribution specialists. The 
relationships among the firms in a network may include: simple transactional contracts of 
the conventional buyer–seller type; supplier–producer collaborative agreements; strategic 
alliances or partnerships; consortia; franchising and distribution linkages; joint ventures; 
or vertical integration. We shall examine these relationships in more depth. 
Starting from these general points about alliances and networks, this chapter builds a 
framework for evaluating, designing and managing alliance and network-based organisa-
tions as part of the implementation of marketing strategy and as a fundamental change in 
the competitive scenario. Nonetheless, it should be remembered that limited knowledge 
and often the absence of effective management capabilities for managing in these new 
organisational forms are illustrated by the continued high failure rates of strategic alliances.
15.3 
The drivers of collaboration strategies 
A starting point is to identify the potential drivers, or motivating factors, that lead organi-
sations towards collaboration in delivering their strategies to market. Such driving forces 
include those outlined in Figure 15.3 and discussed in the following sections.