Strategic alliances and networks in the downstream oil industry in Brazil

This article presents the results of an investigation into the strategic implications of alliances and relationship networks established by the five main oil distributors in Brazil. First, it describes the relational constructs and the strategic network analysis methodology proposed. Secondly, it explains the research methods used, according to the strategy of method triangulation recommended for the type of multiple case study at issue: documental investigation, survey and participative observation. Next, it presents the most relevant results of these studies, which confirm what prior investigations into other sectors, by one of the authors, had already revealed: in the case of firms that operate in alliances and networks, it is fundamental to conduct strategic analyses from a relational perspective, because this perspective can reveal valuable insights for their strategic decision-making that could not be found by way of analyses based on traditional paradigms, such as those of the positioning school or resource-based view. Indeed, in the majority of cases, strategic relational analyses made evident that many of the threats identified in the scope of traditional analyses were not all that significant, and that they could even constitute opportunities when the impact of alliances and networks were taken into account, depending upon the latter's characteristics. This was the case of the threats posed by both direct and indirect rivals to the strategic group formed by the five distributors focused upon in this article; the alliances increased entry barriers and reduced competition.