Marketing Strategy and Competitive Positioning pdf ebook

The type of network relationship , which can vary from the highly collaborative (involv-
ing various forms of inter-organisational cooperation and partnership), to the mainly 
transactional (the traditional buyer–seller transaction, for example).
2 
The volatility of environmental change – the argument that in highly volatile environ-
ments, external relationships with other organisations must be flexible enough to allow 
Figure 15.5 
Types of network 
organisation
Collaborative
Transactional
Low
High
Type of
network
relationship
Environmental volatility
Virtual
network
Flexible
network
Value-added
network
Hollow
network

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NETWORK FORMS
for alteration – and possibly termination – in a short time period. On the other hand, 
when the environment is more stable, more enduring forms of collaboration are more 
attractive.
Using these dimensions to classify networks produces the model in Figure 15.5, which 
suggests that there are at least four types of network prototype:
1 
The hollow network: a transaction-based organisational form, associated with highly 
volatile environments. The term ‘hollow’ emphasises that the core organisation draws 
heavily on other organisations to satisfy customer needs. For example, organisations 
that compete in this way are often specialists that coordinate an extensive network of 
suppliers and buyers. One example of this type of network is Monster.com, the online 
recruitment and careers company. Monster connects job seekers with employers, as 
well as providing them with careers advice online. Some 75 million individuals have 
established personalised accounts with Monster, which operates in 36 countries with 
4,200 employees. A hollow organisation offers a buffer against the risks in a frequently 
changing environment.
2