V. Kasturi Rangan

Building and Sustaining Buyer–Seller Relationships in Mature Industrial Markets

Empirical research in relationship management has tended to take a snapshot of a relationship at a given time and attempt to project its trajectory, despite agreement among researchers that a longitudinal perspective focused on process models advances the implications for practice. The authors use a field investigative approach to study, over time, the evolution of three industrial buyer–seller relationships in mature industrial markets. The relationships are characterized by various degrees of initial asymmetry and have evolved in dramatically different ways over time. Their findings suggest that weaker firms can structure and thrive in long-term relationships with powerful partners because initial asymmetries are subsequently redressed through the development of high levels of interpersonal trust across the dyad, which in turn leads to increased levels of interorganizational commitment.

Beating the Commodity Magnet

Abstract This article challenges the conventional belief that product commoditization is inevitable, and accompanied by deteriorating profits. Four generic strategies to avoid commoditization are suggested. The article describes firms that have successfully implemented these strategies.

What Impact? A Framework for Measuring the Scale and Scope of Social Performance:

Organizations with social missions, such as nonprofits and social enterprises, are under growing pressure to demonstrate their impacts on pressing societal problems such as global poverty. This article draws on several cases to build a performance assessment framework premised on an organizations operational mission, scale, and scope. Not all organizations should measure their long-term impact, defined as lasting changes in the lives of people and their societies. Rather, some organizations would be better off measuring shorter-term outputs or individual outcomes. Funders such as foundations and impact investors are better positioned to measure systemic impacts.

Merrill lynch: Integrated choice †

This article is not available electronically because the copyright is held by the President and Fellows of Harvard College and permission was only granted for print publication. To order copies or request permission to reproduce materials go to http://harvardbusiness.org . The Publisher regrets any inconvenience this may cause.

Price discounting in multi-echelon distribution systems

Abstract Designing distribution systems requires two essential decisions, one strategic (i.e., the number of levels between the producer and the customer) and the other tactical (i.e., channel management policies such as trade discounts). While the modeling literature focuses on one or the other, evidence from the field indicates that the two decisions are in fact interactive. In this paper we focus on the tactical issue of price rebates, but we frame the problem in the overall context of the firms distribution structure. We offer a theoretical analysis of a two-stage distribution system and construct an O(n log n) to optimize the producers profit function. We then discuss in detail one potential application for the model in solving gray market conflicts.

Article not available electronically: Dell Online, V. Kasturi Rangan, Marie Bell

This article is not available electronically because the copyright is held by the President and Fellows of Harvard College and permission was only granted for print publication. To order copies or request permission to reproduce materials go to http://harvardbusiness.org . The Publisher regrets any inconvenience this may cause.

Coming Out of Recession

The financial crisis creates unique opportunities for companies to reassess their strategies and identify innovative solutions, including creative partnerships that meet the needs of the poor.