Customer can use IT to level up their position in the market place, at the expense of supplier power (Boddy, D, Boonstra, A. and Kennedy, G. 2002). Customer can force to cut down prices, can ask for better service and also will force to improve the quality of the product while supplier try to have better margin for their supplements.
It would be not good way to accept all the buyers’ requirements and neither to reject their demands. Therefore, firm should try to keep the balance between customers and supplier with seeing long terms of benefit. For this matter, investing IT would be useful to satisfy customer demand without minimizing the margin of product and service for the firm. For example, linking customer and supplier on web-based system, buyers can active to get information about their interest of product and purchase through on-line system. The price of the product would be decreased with minimizing the cost of retailer shop, wages of sale person and goods inventories cost through web-base system. Also buyer will have more expanded choices for the prices of product and services through web-based suppliers. Supplier (company) would not really have to worry about losing net profit even better provided price and services. Therefore, with investing a new technology, buyers would feel that the power of them have increased by activating themselves more selectively through searching and comparing with many suppliers. On the other hand, company would feel that the company has more power through saving expanses for processing their work for the product.
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