Relationship Spectrum

Adversarial Relationship
1. Perfect Competition (Win/Lose)
  1. Disadvantages
    1. No added value
    2. Short term only
  2. Advantages
    1. Best outcome (5 Rights)
    2. Quick get out
Arms Length
1. Framework (Infrequent)
  1. Advantages
    1. Low risk
    2. Not business critical
  2. Disadvantages
    1. Dispute resolution
    2. Lacks rapid response (not key buyer)
Transactional
1. Repeat Business
  1. Advantages
    1. Know what to expect
    2. Easy
  2. Disadvantages
    1. Low variety
    2. Invincible to supplier
Closer Tactical
1. Keep them sweet
  1. Advantages
    1. Long term benefit
    2. Win/Win
  2. Disadvantages
    1. May not pay off (All or nothing)
    2. Lose/Lose
Single Sourced
1. Committed to 1
  1. Disadvantages
    1. Dependency (High cost to switch)
    2. Complaicancy
  2. Advantages
    1. High trust
    2. Economies of scale
Outsourcing
1. Not business focused
  1. Disadvantages
    1. Cost
    2. Time
  2. Advantages
    1. Focus core
    2. Utilise specialism
Strategic Alliance
1. Short term (Kerry Katona and Iceland)
  1. Disadvantages
    1. Contractual/legal implications
    2. Linked risk (reputation)
  2. Advantages
    1. Increase brand
    2. Mutual growth
Partnership
1. Long term collaboration
  1. Disadvantages
    1. Vision not aligned
    2. Uneven outcome
  2. Advantages
    1. Mutual Benefit (shared risk)
    2. Innovation
Co-destiny/Co-makership
1. Marriage (Currys and PC World)
  1. Disadvantages
    1. Loss of Identity
    2. Resource intensive
  2. Advantages
    1. Long term benefit
    2. Pooled resources

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Relationship Spectrum

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