Large Customers and their Suppliers

Abstract

Notes changes in the economic structure that have important implications for the marketing strategy of many companies – in particular smaller companies who may find themselves, whilst retaining their legal independence, losing part of their operational independence. Describes an investigation into the degree of supplier dependence in two industries – considering the value of two measures as predictors of the likelihood of a supplier being customer dependent. Suggests large firms are not necessarily large customers and goes on to ratify this. Investigates two industries in this study: one in the iron‐casting industry; the other in the plastic injection moulding industry – these two were chosen because of meeting three criteria which were relevant to the study. Sums up that suppliers must examine markets and plan its development trying to take account of likely developments in the structure of its markets.

Citation

Blois, K.J. (1977), "Large Customers and their Suppliers", European Journal of Marketing, Vol. 11 No. 4, pp. 281-290. https://doi.org/10.1108/EUM0000000005014