Strategic Management between Company and Nonprofit Organization: Marketing Channel Evolution

This study has the following significance compared to the existing studies. (1) The business strategic alliance was analyzed using the traditional marketing channel theory: This perspective also reexamined theory in terms of business strategic alliance. The new phenomena of the marketing channel may need new theories for the explanation, but considering that the new marketing channel relationship (i.e. relationship between company and nonprofit organization) did not disagree with the traditional marketing channel relationships, it is necessary to reassess the traditional marketing channel theory in order to determine which existing concepts are still effective to use and which new concepts to be added. The purpose of this perspective was to develop the concepts of marketing channel theory and understand the business strategic alliance (especially, partnership between company and nonprofit organization) mechanism that maintains the equality and bilateralism to produce innovations regardless of the existing power relationship. The functions of the mechanism consist of promotion and management of innovations, control of the power game, management of the relationship between partners, and establishment of the environmental conditions.