Since Toyota and Honda approached the suppliers initially by giving them small contracts and awarding them with bigger, long term contracts, they built trust with the suppliers. GM and Ford has to either find new suppliers and treat them more appropriately, or hope that the same suppliers will believe they will be treated different, especially for the long term...
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I believe that sometimes Lopez used his supplier power appropriately and sometimes he did not. Lopez was able to get good results at each of his positions, showing he knew what he was doing. This is what kept him rising in the ranks of GM. Lopez did focus heavily on pricing, which does not lead to long term supplier relationships...
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Supply Chain Richardson (1993) also added significance to the supplier-supplier relationship that the buyers actually use parallel sourcing strategies to create simultaneous competition and cooperation between the suppliers...	1 / 249
Five forces analysis The idea is that the buyers would have many choices of where to buy the materials they need. Such as the Knitwear industry, if the price of the goods is too high, then customer could easily go to the competitors that would offer the same product for less...	2 / 550
Eliminate the middleman? It also has less control of the quality and cost of production. Given that the vendor may not always disclose everything to USTech, the firm may not have enough knowledge of its vendor capabilities and whether it is competitive...	4 / 1099
5 Forces If the supplier does not depend on your business, you will have less power to negotiate. Of course the opposite is true as well. Wal-Mart has significant negotiating power over its	2 / 288