Would it benefit an OEM Supplier to attempt to form an alliance with the other OEM Suppliers who are performing the same manufacturing function?
Inconclusive. Based upon the premise of economies of scale and scope, an OEM Supplier could potentially benefit from allying itself with another manufacturing service provider. However, as with any merger, acquisition or alliance, such pursuits present as many dangers as opportunities. Thus, the best recommendation is to thoroughly assess the situation and make a decision based upon the hundreds of factors associated with such an opportunity.
Related Questions
- On the Part B form, applicants are asked to identify their supplier or suppliers. If a licensee changes suppliers, how does the licensee report the change to API?
- Would it benefit an OEM Supplier to attempt to form an alliance with the other OEM Suppliers who are performing the same manufacturing function?
- Why does the variable pricing method benefit both the OEM Supplier and the Purchaser throughout the life of the contract?