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The Supply Side and Strategic Positioning

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Abstract:

This paper explores the issue of strategic positioning and how it is related to decisions regarding suppliers. By using longitudinal case studies of two Italian machinery producers the paper focuses on decisons regarding the in-and outsourcing and policy in supplier relationships over time. It is argued first that choices on the supply side of a company are an important, if not critical, element of strategic position. Secondly, such choice is always subject to change as the intended strategy changes and reflects the perceived criticality of various resource elements for the company. Thirdly, the actual solutions adopted in relation to suppliers reflect the capabilities of dealing with supplier relationships that the company has acquired over time, and therefore tend to be unique.

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Document Type: Research Article

DOI: https://doi.org/10.1362/14753920360731883

Publication date: 2003-12-01

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