Does an essential component mean bargaining power?
Consider technological necessity, alternatives, and dependence on trading partners together.
ASSETCASTING commentary
An interpretation of the fictional story, not a statement by the original video creator.To assess a component supplier's bargaining power, consider the time and cost of finding alternatives alongside the share of supplier revenue contributed by that customer. Difficulty switching suppliers is different from the supplier's ability to withstand losing an order. Long-term contracts or a customer's own production can change the relationship even when immediate substitution is difficult. Technical necessity alone does not establish pricing power.
Story references
Related learning notes
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