Retailing Strategy and the Importance of Clearly Defined Partnership Arrangements

Retailers operate in a complex and competitive environment, and because of this retail managers need to be aware of the need to seek market opportunities and develop long-term sustainable relationships with partner organizations. In order that a retail organization develops a sustainable competitive advantage, it is essential that a partnership arrangement is viewed as necessary and is based on trust. This means that there is a high degree of transparency and that open communication is encouraged. It also means that various types of information are shared and staff involved in the partnership arrangement are committed to personal development. This is necessary if an organizational cultural value system is to be produced that gives rise to a set of common goals and objectives that translate into a highly motivated workforce. Should this be the case, staff in the partnership arrangement should be able to provide a high level of customer service that results in customer expectations being met. Retail managers and their staff are required to be committed to market intelligence gathering and to think in terms of strategic positioning. The governance mechanism can be used as a blueprint to provide retail staff with direction, and it should ensure that open, mutually beneficial partnership arrangements develop that can be maintained through time