Prepare Your Company for Global Pricing  

Oleh:

Swartz, Gordon ; Narayandas, Das ; Quelch, John

Jenis: Article from Bulletin/Magazine - ilmiah internasional
Dalam koleksi: Sloan: Management Review vol. 42 no. 1 (2000), page 61-70.
Topik: GLOBAL PRICING; company; global pricing

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: SS27.3 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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As adapting to globalization becomes increasingly necessary, business customers are pressuring suppliers to accept global - pricing contracts (GPC s). So far, most of the benefits of GPC s have redounded to the business customer. Although purchasers may promise a supplier access to international markets, guaranteed production volumes and improved economies of scale and scope, too often they fail to deliver. They may not buy as much as planned, may demand customization that the supplier cannot leverage with other customers, may force the supplier to drop the customer's competitors - or may fall on hard times and have to scale back commitments. That is why, before signing a contract, suppliers should do due diligence. According to Das Narayandas of Harvard Business School, John Quelch of the London Business School and Gordon Swartz of Oxford Associates, suppliers must fully understand the customer's global strategy and the business conditions in its respective markets. They also need a firm grasp of their own strategy and local practices. Which GPC s would be suitable and which would be detrimental ? Suppliers don't want to turn down all GPC s. They recognize that their global customers may be both their largest customers and their fastest growing ones - and understandably, they want to share in the benefits of growth.

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