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How Alliance Managers Sell Products with their own competitors? An Exploratory Research Estelle PELLEGRIN-BOUCHER ERFI Christophe FOURNIER CR2M Hervé FENNETEAU CR2M Université Montpellier 1. Some examples of coopetition.
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How Alliance Managers Sell Products with their own competitors?An Exploratory ResearchEstelle PELLEGRIN-BOUCHERERFIChristophe FOURNIERCR2M Hervé FENNETEAUCR2MUniversité Montpellier 1
Some examples of coopetition • Retailing : alliances between big and small firms (to reduce costs and better negociate with major outlets). Concerns Food, textile, hygiene etc. • Financial Industry : Credit Card • IT : Oracle, IBM, HP (hardware and software), + consulting firms sell together their products to their clients (especially in B to B marketing)
Agenda • What is Coopetition ? • Representation of the concept of coopetition in the selling area • Research Question: case 1 ? • Methodology • Results & Implications • Contribution and limits
What is Coopetition ? • Case of alliance between competitors • Differences with an alliance : • cooperate AND compete at the same time • In literature about alliance • KSF are trust & cooperation • In literature about coopetiton • KSF are cooperating & competing
The situation • According to our knowledge, very few theorical and empirical studies in the sales field, • Implementation of a sales coopetition strategy raises sales management questions
Firm A Firm B Sales Force A Sales Force B j Traditional Sales force Alliance Manager A Alliance Manager B Traditional Salesforce k l l BUYER Representation of the concept of coopetition in the selling area
Firm A Firm B Sales Force A Sales Force B j Traditional Sales force Alliance Manager A Alliance Manager B Traditional Salesforce k l l BUYER Case 1 How will cooperation between these two alliances mangers work?
Firm A Firm B Sales Force A Sales Force B j Traditional Sales force Alliance Manager A Alliance Manager B Traditional Salesforce k l l BUYER Case 2 How managing this special category of salespeople or alliance managers ?
Firm A Firm B Sales Force A Sales Force B j Traditional Sales force Alliance Manager A Alliance Manager B Traditional Salesforce k l l BUYER Case 3 How to manage a global sales force intra-firm ?
Research Question: case 1 ? • how alliance managers, who are in charge of commercial and marketing alliances, manage to create joint commercial solutions with their competing partners and • how they promote the solutions of their own companies to these particular partners
Methodology • Four Cases Studies • IT area • 2 successes, 2 failures
Results • Factors of Success • Joint solutions suit customers needs, • long term relationships, • reactivity • Factors of Failure • lack of coopetition strategy at the firm level, • internal organization weaknesses, • lack of alliance management • personal dysfunctions, • change in the environment (legal, economic etc.)
Implications and Ways of research - The influence of customers on the type of sales (coopetition or not) • This type of relationships (coopetition) is more and more frequent, specially in B to B marketing but it is always difficult and complex. • There are a lot of failure because when the deals does not work the relationship is stopped and when the deal works it is always difficult to share the cake • The importance to get salespeople involved in that type of relationship LWT ?
Contribution • Some existing literature about commercial alliances but • Coopetition is a new theorical field and specific case of alliance • Very few about sales management and coopetition
Limitations & Futur Researches • External validity : study other situations • Study the two other cases (2 &3) • Other ways of data collection (network analysis, ethnographic methodology