Strengthen Customer and Suppliers Intimacy
Porter (1985) proposed cost leadership, differentiation, and niche strategies for Competitive Advantage . Additional strategies have been proposed by other strategic management authors (e.g., Neumann, 1994; Wiseman 1988; Frenzel,1996). So, actually, the core strategic of Porter’s just three, and the others are the addition of another. One example of the other generic strategies is Strengthen Customer and Suppliers Intimacy. Already recognized by businesses if the customer has the bargaining power. To make customers remain faithful and loyal, customer bargaining power should be reduced. Customers must be locked to remain faithful and loyal. The most effective way to lock customers to remain loyal is to create switching costs / moving expenses. Examples are from the company McKesson Corp., a drug company. McKesson provides terminals to its customers, drug stores and pharmacies that are used to ordering medications online. McKesson Customers have 2 (two) alternatives, order drugs