What kind of relationship Company 'X' want to maintain with their Qatar customers?

The Working Relationship Continuum theory: Company 'X' need to maintain relationship with their target customer Qatar.

What kind of relationship Company 'X' want to maintain with their Qatar customers?

In company 'X' it is important to decide if you want to have a long-term relationship or a short-term relationship with your customers. To do that company 'X' can use the model for working relationship continuum, where the company 'X' decide if they are going to differentiating with transactional (short-term) or collaborative (long-term) customers. Company 'X' is a company that strives to have a long-term relationship with their customers. Company 'X' is following this model really well when they are very thorough when it comes to what the customer need and to make sure that they get the right instruction on how to use the products the right way.

One important thing to remember is that not all the customers wants the same things from a company. The company cannot have the same relationship with every customer, because if the company should have the same relationship with every customer the product the company deliver would not have the same value to each and every one of the customers. Every company would like there product to have a great value to every customer. If the company 'X' can manage to make products that are of great value and fits the customer's needs, they are on a good way of getting a long-term relationship. One way for company 'X' to make sure that the customer are satisfied and ready for a long-term relationship is to create a good relationship strategy. We think it would be a great idea for company 'X' to use the partnering as a focused market strategy for new market Qatar.

The Working Relationship Continuum

Before the managers of a company decide to differentiating transactional and collaborative customers, they have to think strategically about the opportunities they select to serve. After they have done that they should look at the relationship-specific market offerings which they do from delivering the superior value in this kind of offerings. In all working relationships between customer and supplier firms extends beyond the initial order or transaction. This relationship is called: “The working relationship continuum” and it can be shown in a figure. (Anderson et al 2009)

Figure:  The Working Relationship Continuum (Anderson & Narus. 2009 pp 412)

The Pure Transactional relationships – in this part the supplier (Company X) and the customer focus on the exchange of basic products, that it would be repeated over time and for highly competitive prices.

Corrugated box – the corrugated box considers to be a long-term supply contract and just in time inventory program. When it generally represent the extent of potential collaboration.

Fiber Drum – the fiber drum industry focus on helping the customer to modify their systems and procedures, for example lifting and stacking their fiber drums. This in a collaborative relationship.

Programmable Controllers – in the programmable controllers the collaborative relations in an industry can be encompassing, ranging from co-design of manufacturing systems to installation, training and maintenance.

The Pure Collaborative relationships – this is a kind of partnering relationship. This means that the customer firm and the supplier firm have a strong and extensive social, service, technological and economic ties over time. This is to lower the total costs and/or increase the value and thereby be beneficial for both companies.

Company 'X' need to be focus in collaborative exchange when they strives to form a strong relationship with the customer and build trust in the long run. This in return can lower the total cost and/or increase value. If Company 'X' on the other hand should have been in a transactional exchange they should have lower prices for a shorter time period and in that way competed more with the other industries,. They probably would not have the same relationship with the customers either, when the customers in this kind of industry is striving for good relationships and good products.

In the corrugated box we see that Company 'X' is in collaborative exchange when they strives to form a strong relationship with the customer and build trust in the long run. This in return can lower the total cost and/or increase value. If Company 'X' on the other hand should have been in a transactional exchange they should have lower prices for a shorter time period and in that way competed more with the other industries. They probably would not have the same relationship with the customers either, when the customers in this kind of industry is striving for good relationships and good products. Strives to have a good long-term relationship with their customers and that they have long-term contract of the products. But they even can, as we see in the fiber drum, help the customer to modify their designs and bins to get a better working area. Company ‘X’ focus a lot on helping the customers with training the customers so they know how they can improve their working environment. Company ‘X’ even have staff that is stationed out at the customer firms to make sure that they get the right education on how to use the products the right way. This is sort of overlapping in to the programmable controllers when in this area the focus is on co-design of manufacturing systems to installation, training and maintenance.

From the collaborative point of view we can see that Company ‘X’ can fulfil all the parts on have a working relationship continuum. For Qatar, now they can go for fiber drum and after sometimes they can change their relationship with programmable controllers.

Reference

Anderson, J., Narus, J., & Narayandas, D. (2009). Business Market Management (3rd ed.). New Jersey: Pearson Education.