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Many retailers look to strategic partnerships to increase operational efficiency and drive sales. One such strategy is category captaincy arrangements, or strategies that involve outsourcing category management to one dominant supplier. However, these arrangements can be less than satisfactory in terms of expected strategic benefits, with research suggesting that careful management of one's network position may be crucial to ensuring positive outcomes of such arrangements. In order to shed some light on these captaincy arrangements, the ACRS conducted a series of qualitative interviews with category managers to gain an understanding of some of the associated benefits and disadvantages. We find that with careful management and a focus on strategic management, these arrangements can result in mutually created benefits.
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