Management Distribution: Strategic Alliance in Distribution

Strategic Alliances in
Distribution
Cininta Meirinda
Clara Sarah
Patricia Adam

 Their nature and their motives for creating strategic alliances
 Building commitment by creating mutual vulnerability
 Building commitment by the management of daily interactions
 Decision structures that enhance trust
 Moving a transaction through stages of development to reach alliances status
 What does it takes and when does it pays to create a marketing channel alliance? STRATEGIC ALLIANCES
 What is Strategic Distribution Alliance?
Two or more organizations have connections that cause them to function according to a perception of a single interest shared by all parties.  What is Alliance?
It is the conditions where the power is balanced and it is affecting each other. Its encumber the parties involved, imposing on them obligations that may be very costly
 What is Distribution Alliance?
It is a genuine commitment when an organization desires the relationship to continue indefinitely.
 What is commitment?
It is something that difficult to observe because it contains attitude, intention, and expectation.

Upstream Motives
 Fundamentals
 Generating Customer Preference
 Preserving Choice and Flexibility of Channel
Partners
 Strategic Preemption
 Superordinate Goal

Downstream Motives
 Fundamentals
 Generating Customer Preference
 Preserving Choice and Flexibility of Channel
Partners
 Strategic Preemption
 Superordinate Goal

Do Alliances Outperform
Ordinary Channels?
YES
BUT, Trusting and helping parties will do more for each other.
DON’T really think about the profit maximization.
REMEMBER! It doesn’t mean that all channel should strive to become alliances.

BUILDING COMMITMENT BY CREATING
MUTUAL VULNERABILITY : Expectation of Continuity
Expectation
 Doing future business with producers whom they trust  And with whom they enjoy two-way communication. Why Commitment