Beruflich Dokumente
Kultur Dokumente
and Networks
Sellers Buyers
- Transactions
are important
However, what do we find?
• Limited amount of sellers and buyers
• Market consentrations
• Repeated transactions – relationships over time
• Mutual adaptations
• Both parties are active
• Mutual interdependence
• Cooperation and conflict
Relationship Marketing
• A few number of customers represents the
majority of turnover (80 – 20)
• A whole range of contacts across the
organisations involved
• Purchases are few but substantial
• Handling of key relationships becomes main
factor for success
Typology of relationships
Transactions Repeated Long-term
(market) transactions relationships
Vertical
Integration
(hierarchy)
Agenda I
• What is a business relationship?
• What is a business network and what is it not?
• Industrial Network Approach to industrial
marketing
• Myths and paradoxes related to business
markets
Business Relationship
• Connects two organizations
– Economic dimension
– Technical dimension
– Social dimension
– Immaterial
– Interdependence!
What is a Business Network?
• Business network vs. Cluster
• Business network vs. Market
A Busines Network is not:
• …a “cluster”.
• ...a personal network.
• ...mainly something that is based on
• power/politics.
• ...something ”secret”.
What is a ”cluster”?
• A group of companies...
• In the same type of industry ?
• ...develops/uses closely
related technology?
• Located in the same region?
• Visible from ”outside”?
Business Networks:
Basic Assumptions
Perspective A Perspective B
• Designed • Emergent
• Formal • Informal
• Within a business sector • Across business sectors
• Relationships as • Relationships as
• ”chosen” • ”inevitable”
• Center/”locomotive” • No center
• Common Goal • No common goal
A network perspective
Raw materials
Horizontal
integration Producer
Vertical
integration
Wholesaler
Retailer
The network on the contrary has no centre,
no beginning and no end..
1. Opportunities - Limitations
2. Influencing - Being influenced
3. Controlling - Being out of control
The First Network Paradox
• Both opportunities and constraints
• The diversity of the network gives every decision-
maker myriad opportunities to act
• Can not think of its own interests in isolation
– Many network designers, even though companies often
see themselves as the ”sun in the universe”
– Change can only be achieved through the network
– Any change in a network involves costs, both for those
involved in the change and perhaps for others elsewhere
in the network
The Second Network Paradox
• Influence or being influenced
• ’The chicken and egg dilemma’:
– A company’s relationships are the outcomes of its own
decisions and actions
– A company is the outcome of those relationships and of
what has happened in them
• Meaningless to determine what came first
– Both situations exist simultaneously and both premises are
equally valid
The Second Network Paradox
• Strategy is inter-active. Not just a question of
generating a plan internally, but to generate plans
with others
• Both parties necessary for relationship development
– least committed company restricts development
– most committed company drives development
• Nodes and threads are interdependent
The Third Network Paradox
• Control and letting go of control
• Companies try to manage their relationships and
control the network that surrounds them to achieve
their own aims
• The more a company achieves this ambition of
control, the less effective and innovative will the
network be – and ultimately the less successful they
will be
Implications for marketing strategy
• The key issue is to handle a complex set of
relationships to your benefit
• Value creation through co-operation and
competition with key partners (”co-opetition”)
• Segmentation in terms of partners or other actors
• Targeting and positioning in terms of value co-
creation and mutual dependence:
Industrial Marketing is not a new thing:
The Stavanger Canning industry
• 14 canneries in Stavanger in 1900
• 36 in 1915, equaling 350 million cans
• 72 in 1922
• Exports to almost every corner of the world. Labels were
found in French, German, Spanish, Finnish, Icelandic, Chinese,
Thai, Arabic and Hebrew, besides English for the markets in
the US, England, Australia, New Zealand and South Africa!
• The following quantities of items would be required
for the production year 1915:
– 4.000 -5.000 brisling (fish),
– 350 million rubber rings,
– 350 million lids and cans,
– 350 million labels,
– 3.500.000 wooden boxes and
– 10 million liters of olive oil.
• Along the development of
the canning production,
Stavanger saw the growth of
– a large printing industry (for can labels),
– a rubber industry (for rubber sealing
between can and lid),
– a packaging industry (for lids, cans and
keys) ‘
– a range of other industries such as
machines, rods, frames, threading
tables, and advertising material
New innovations needed
• The rapid development of the industry was aided by a number
of product innovations, most notably the Reinert and Opsal
seeming machines
• Before the invention of these machines, lids had to be
manually welded onto the cans
• A welded could manage between 600 and 700 lids per day.
The new machine increased this number by a tenfold
• Price of cans was halved in 1912
End of the industry in the 1960s…
And then..