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MNP3703-26-S1
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Read the following scenario before answering the question:
Chamberlains have been supplying Extrava Builders with their branded construction machinery over the past 15 years. The construction machinery is very expensive and has to be technically updated at least twice a year, since there are frequent updates that enable new features of the machinery. Although Chamberlains have managed to secure the contract with Extrava Builders for the past 15 years, there are other suppliers in this fast-growing market that compete for the contract every year. Extrava Builders annually considers every tender, but have been awarding the contract to Chamberlains, because of their strong brand and the research they put into the development of their construction machinery. Even though Chamberlains and Extrava Builders share a mutual trust, they share very little information with each other. The onus of the relationship, activities and coordinating tasks are on Chamberlains.
Chamberlains will invest much time and money in their relationship with ’ level of investment in the relationship will be low.
“Innovation” in Resource-Based Theory (RBT) refers to the ability to exploit new ideas and technologies before competitors.
The partner base represents all the suppliers in the industry rather than those directly linked to a single organisation.
Read the following scenario before answering the question:
Chamberlains have been supplying Extrava Builders with their branded construction machinery over the past 15 years. The construction machinery is very expensive and has to be technically updated at least twice a year, since there are frequent updates that enable new features of the machinery. Although Chamberlains have managed to secure the contract with Extrava Builders for the past 15 years, there are other suppliers in this fast-growing market that compete for the contract every year. Extrava Builders annually considers every tender, but have been awarding the contract to Chamberlains, because of their strong brand and the research they put into the development of their construction machinery. Even though Chamberlains and Extrava Builders share a mutual trust, they share very little information with each other. The onus of the relationship, activities and coordinating tasks are on Chamberlains.
Chamberlains and Extrava Builders
Why is it important to sustain strategic supplier relationships?