Strategic Alliances Or Co-Branded Relationships On The Internet – An Examination Of A Partnership Between Two Companies, Unequal In Size

Authors: Aileen Young; Margo Buchanan-Oliver

Moore and Andradi (1996) reviewed the ?key competitive dimensions which will determine who dominates in the future development of business on the Internet? and proposed that ?the winners on the WWW will be leading brands, big access providers and firms with existing relationships with customers?. Their proposition is based on the four competitive dimensions of (1) access, (2) brands, (3) content and (4) relationships ? areas in which they argue larger firms have the advantage.We were interested to explore how a co-branding alliance between significantly unequal partners would succeed and undertook a case study to illustrate the strategies and dynamics of two companies, of significantly unequal size and industry experience, and how they function together under a co-branding agreement and relationship which extends to the Internet. The key findings from qualitative analysis of interviews with key management from both partner companies indicated that:1. the concept of a ‘strategic partnership? was the antecedent for the co-branding activities and relationship.2. Fundamental strategies behind co-branding activities established in traditional marketing were extended into the digital environment3. The relationship, network and brand-related advantages were more overtly sought and received by the smaller company. 4. value was perceived as being added to the larger partner company. This paper demonstrates the importance and reciprocity of value-based strategic alliances in a digital environment and illustrates how a relatively small organisation may both leverage co-branding and add value to a larger, more established partner company.

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Publish Year: 2003

Conference: Lugano, Switzerland (2003)