Supplier Integration in Product Development Projects of Automotive Manufacturers | 
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Implications of Self-induced Mono-polies and Inherent Pie Sharing Challenges
| Journal | Industrie Management |
| Issue | Volume 31, 2015, Edition 6, Pages 56-59 |
| Share | Cite | Download |
Abstract
Automotive manufacturers increasingly use the concept of supplier integration. However, the concept often is attached with an increased dependency of the buyer towards his suppliers, which generates self-induced monopolies. The inherent erosion of efficient market mechanisms, combined with an increased supplier power due to consolidation processes, can lead for the manufacturer to a disfavoring profit redistribution. Recurring controversy in current buyer-supplier relationships show that pie sharing approaches need to be adopted to the concepts of supplier integration.
Keywords
automotive manufacturer, new product development, pie sharing, quasi mono-poly, supplier integration
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