Your company has been doing business with one of your major suppliers for several years. The business relationship is good but has never gone beyond formal purchasing frame contracts. The supplier’s management has now changed, and the new manage-ment team has approached your company with a business proposal to jointly develop a new product that would be based on an innovative technology patented by the supplier. The supplier hopes to tap into a new business area, while your own company could solidify its competitive position in the market.
Analyze this situation using the theoretical concepts outlined in this chapter. Which opportunities and challenges will this new cooperative relationship entail, and how can your company best cope with them?