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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (45762)	2/5/1999 8:07:00 AM
From: Earlie	Read Replies (2) of 132070

MB: Here's a little tale with a lesson about doing one's homework. A certain company, keen to enter the bottom end of it's addressed market, approached the supplier of a major component in its product line. The "certain company's" strategy was to threaten to switch to another supplier, well known to be selling its equivalent components at lower prices. "Certain company" threatens to switch unless supplier cuts prices to match those of its competitor. Supplier bends, but won't/can't go all the way. "OK, we're out of here" is "certain company's" response. Oh how the best laid plans of men aft go astray. Turns out alternative supplier is "production constrained", that is, it's already selling every single one of the components it can make. "Sorry, come see us in a few months. We're ramping production, so maybe then." Oh my. Talk about a nasty dilemma. (g) Best, Earlie

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