Relationship Marketing Strategy and implementation

capability to control the value chain from synthetic fibres to finished
garments.
Now, the emphasis is upon virtual integration, by which is meant
a confederation of organizations combining their capabilities and
competencies in a closely integrated network with shared goals and
objectives.
Figure 3.1 brings together the concept of vertical supply relation-
ships and horizontal alliance partnerships as a closely coupled
network within the Six Markets model.
It could be questioned whether there is a need to make a distinc-
tion between alliances and suppliers. Increasingly leading firms
seek to create alliance-type relationships with suppliers and to
manage in a spirit of partnership. Alliances have often been seen as
a means of importing a capability or a resource into the business, for
example the strategic alliance that existed for some years between
Rover and Honda which provided Rover with much-needed new

The supplier and alliance market domain 163

Internal

Markets

Supplier/Alliance

Markets

Recruitment

Markets

Influence

Markets

Referral

Markets

Customer

Markets

Organization

Alliance Markets

Supplier

Markets

Figure 3.1 The supplier and alliance market domain.