Shared Distribution Partnership In Relations Risk And Prevention Study

Shared distribution alliances are defined as strategic alliances carried out for theirown interests in distribution channels between two or more businesses (manufacturers,brokers). Every company has their own advantages of resources (such as knowledgeresources and technology resources), through which they have co-marketing activities,share resources and provide services together to create a competitive marketing strategy.In the21st century, with the rapid economic development, quickly upgrading scienceand technology level and accelerating globalization process, the size and number ofshared distribution alliances rapidly expand on a global scale. However, the rapiddevelopment of shared distribution alliances followed by high failure rate. According tothe survey, more than50%of the entire alliances are not successful. Therefore, shareddistribution alliances are not stable in cooperation, which causes a variety ofrelationship risks. The paper focuses on the risk issues between shared distributionalliances. What factors result to the risk issues between shared distribution alliances?And how can effectively avoid these relationship risks? To answer these questions, weneed to study the exposing mechanism of the relationship risks between shareddistribution alliances. Based on this, the paper has following researches:1. The paper analyses cooperation effect between shared distribution alliances(theeffect of comparative advantage and specialization effect), and based on the previousview proposes that shared distribution alliance are mainly formed due to the fact thatcompanies achieve resource advantages complementary, co-share cost and risk andlearn from each other.2. The paper analyses exposing mechanism of the relationship risks between shareddistribution alliances: knowledge spillovers lead to changes in negotiations and, thus,the relationship risks are exposed. A conceptual model is put forth.3. The paper studies the relationship risks between shared distribution allianceswith a model, and then comes to a conclusion: the knowledge spillover benefits andmutual trust between enterprises play an important impact on the relationship betweenrelationship risks. On the basis of the above analysis, this paper proposes riskprevention mechanisms, including co-sharing security mechanism benefits andrelationship risks, partner selection, and mutual trust.