Chap 3 – 5: Strengthen Customer and Supplier Intimacy
– Use an information system to tighten linkages with suppliers and develop intimacy with
customers.
– Create a strong linkage between the company and their suppliers and/or customers.
– Increase switching costs (the cost of switching from one product to a competing product)
– Increase loyalty to a business and creates stronger relationships between firms and
suppliers/customers. Customers and suppliers will feel more valued by the company as
well.
An example of a company that applies supplier intimacy is Toyota. Toyota, along with other
automobile companies, allows their suppliers access to production schedules. This makes it
easier for suppliers to know when to ship parts and supplies without having to
communicate back and forth about fulfilling orders. This strategy makes the production
process run smoother and faster because the supplier can produce the goods they need and
ship them to Toyota just in time for their production of the vehicles.
Amazon employs the customer intimacy strategy. Amazon tracks its account users’
preferences and recommends certain products that customers may like based on their
recent searches and purchases. Amazon also recommends products based on if another
customer bought the same or a similar product to the user and what the other customer
purchased with it.
