Manufacturer - Retailer Relationships The Context Of Business Models
Wydawnictwo: SGH – Szkoła Główna Handlowa w Warszawie
The issue of manufacturer - retailer relationships has been discussed since the end of the 70s of the previous century. Relations between organisations are presented in the literature from the perspective of various theoretical concepts and the authors of publications use various definitions and classifications thereof (among others: Thomas 1992; Osarenkhoe 2010; Bititci et al. 2004; Bengtsson & Kock 2000; Easton & Araujo 1992). In accordance with the concepts of PARTS and value chain (Brandenburger&Nalebuff 1995), coopetitive relations between market "players" have a character of a non-zero-positive-sum game, which results in both parties involved generating added value. In compliance with the resource-based approach (Clarke-Hill, Li & Davis 2003; Hunt 1997, Harrison et al. 2001; Peteraf 1993; Romanowska 2002; Goerzen 2007; Lavie 2006; Stankiewicz 2005; Godziszewski 2001, Prahalad & Hamel 1999), organisations are able to establish a relatively permanent competitive advantage if they can offer value to customers that is comparable to the value offered by competitors with lower costs of establishment thereof or, if they can offer bigger value to customers with comparable costs. The competitive advantage depends on the method of using available assets (Henderson & Cockburn 1994; Boultellier et al. 2000). Enterprises suffer a deficit in strategic assets due to a limited and frequently blocked by competitors access thereto or a lack of the possibility to independently establish such an access due to very high costs. An alternative would consist in establishing cooperation with organisations that dispose ofcomplementary assets or with which such assets can be created (Gomes- Casseres 1996; Boyce 2001; Sroka 2012; Doz & Hamel 1998; Cygler et al. 2013; ed. Sznajder 2012; Łobejko 2010; Czakon 2012; Gorynia & Jankowska 2008).
In the literature devoted to inter-organisational relations, horizontal relationships have been predominantly studied while only some publications discussed vertical relations, focusing on the relations between manufacturers and suppliers, not buyers (among others: Sobrero & Toulan 2000; Chen & Hall 2007; Luo 2004). The current status of knowledge on manufacturer - retailer relations should, therefore, be considered as rudimentary. Many authors have concentrated on the essence of these relations (Noordewier et al. 1990), consequences thereof (Anderson & Narus 1990), relationship marketing (Izquierdo & Cillan 2004), the cooperation of local manufacturers with intemational trading networks (Kovacs 1984) and with large retailers (Kłosiewicz-Górecka 2010). It was stated that vertical cooperation relations favour achieving better results as compared to the competition (Palmatier et al. 2006). These relations, including the cooperation between retailers and suppliers, can concern various processes in the value chain, such as the ones oriented towards customers, innovation and supply chain (Zentes et al. 2004). A lot of studies concentrated on the analysis of the fast-moving consumer goods market and there are few publications concerning the durable consumer goods market.
Relations between manufacturers and retailers can be also considered in the context of business models' changes and transformation of both retailers and manufacturers roles in the value chain (Bloom&Perry 2001; Amato&Amato 2008). Determinants of these changes comprise, among others: an increase in retail sale, growing competition that requires searching for new methods of competing, consolidation of retailers and establishment of international capital groups, high sale profitability of retailer brands (Gomez-Arias & Bello-Acebron 2008), an increase in the variety of distribution channels (Seiders et al. 2000; Friedman 2002), growing sale of products under retailer brands (Soberman & Parker 2006) as well as a development of systems supporting customer relationships' management (Corsten & Kumar 2005) and IT technologies. The IT technologies' development (Sznajder 2013) entailed the disintermediation and re-intermediation of distribution channels. Also, new types of retailers have appeared. Traditional boundaries between manufacturers and retailers disappear and those parties not only cooperate in the distribution channel but also compete for the same buyers (Anderson et al. 1997). At the beginning, the role of retailers consisted in providing customers with the utility of space and time, whereas, the execution of the marketing function was left to manufacturers (ed. Witek-Hajduk 2011). Retailers have been overtaking marketing functions and establishing own brands (Fumero & Angeles 2006). Business models have been changing as well. Manufacturers implement the following business models: Market Player, Traditionalist or Contractor, whereas retailers: Distributor or Integrator (Dudzik & Witek-Hajduk 2007). However, a deficit of publications devoted to the relations between manufacturers and retailers in the context of the business models is visible. In the previous studies a lot of attention has been paid to the competition between manufacturers' brands and retailers' brands (among others: Petty 2012; Hoch et al. 2002; Chimhundu 2011), manufacturers' reaction to the competition with retailers' brands (Verhoef et al. 2000), a comparison of the strategies of manufacturers' and retailers' brands (Bontemms et al. 1999; Steiner 2004; Bonano & Rigoberto 2005; Ailawadi & Bari 2004; Hultman et al. 2008), factors favouring the development of retailers' brands and conditioning their market share (Dahr & Hoch 1997). Manufacturers and retailers have been classified into separate strategic groups (Porter 1976). A decreasing difference in the level of the quality of products labelled with manufacturers' brands and retailers' brands favored changes in manufacturers' strategy towards retailers (Verhoef et al. 2002), among others, in the scope of producing goods ordered by retailers. Both motives of this cooperation (Quelch & Harding 1996; Gomez & Benito 2008; Gomez- Arias & Bello-Acebron 2010) as well as factors determining benefits obtained by manufacturers from producing goods under a retailer's brand have been studied. According to Kumar and Steekamp (2010), manufacturer - retailer relationships do not improve after the commencement of the contract production but they can cause an increase in the dependency on retailers.
Being aware of the incompleteness of knowledge on the manufacturer - retailer relationships on the market of durable consumer goods, a team of researchers under the guidance of Marzanna K. Witek-Hajduk made an attempt to fil! in this gap in the scope of both concept and research. Therefore, the book fits into the newest studies. The study is aimed at developing knowledge on manufacturer - retailer relationships in the context of business models and in conditions of IT technologies' development.
The authors set the following cognitive and methodological objectives of the book:
A review and critical analysis as well as the synthesis of theoretical concepts regarding manufacturer - retailer relationships and factors determining thereof as well as a systematisation both of concepts and characteristics of those relationships with regard to the complexity of this phenomenon (a cognitive objective).
Establishment of a model of manufacturer - retailer relationships based on a review of the literature, taking into consideration the content of the relation, the context of factors determining thereof as well as the strategic implications of those relationships (a methodological objective).
Identification and characteristics of the relationships, including cooperation between manufacturers and retailers on the market of durable consumer goods, the context thereof as well as individual and joint benefits obtained from the cooperation by the engaged parties.
While achieving the aforementioned objectives, the authors applied various research methods. First, a review, a critical analysis and synthesis of the literature on the inter-organizational relations, including manufacturer - retailer relationships, growth strategy, cooperation and competition. Qualitative and quantitative research results were used. Four case studies are presented herein based on the in-depth interviews with managers of two manufacturers of durable consumer goods and two retailers trading those goods. Furthermore, selected results of the quantitative research conducted with the use of the CATI method on the sample of medium and large manufacturers of durable consumer goods operating in Poland and large and medium retailers trading those products are presented.
The book consists of an introduction, five chapters and a summary. The first three chapters constitute a theoretic part, whereas the two last chapters include selected results of the empirical research.
The first chapter is devoted to the conceptual description of inter-organisational relations. Relationships between organisations are characterised through the prism of many theoretical concepts, among which the leading ones include the transaction costs theory, game theory and the resource-based approach. Organisations can establish a wide range of relations and their variety predominantly results from environmental conditions, the impact of competition and cooperation, the number of engaged parties, the power of relationships and the characteristics of the actors themselves.
The second chapter comprises a critical review, an analysis and synthesis of the literature concerning manufacturer - retailer relationships. Parties to the manufacturer - retailer relationships are characterised with a consideration of the context of business models of manufacturers and retailers. T
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