Being part of corporate world in this globalised market, you must be responsive to different happenings in the world and their implications on your business. Your relations with competitors and suppliers play crucial role in product cycle and business development.
For selecting a supplier out of many and recognising competitors you require suitable information, which is only feasible through profound research and planning. Businesses can only build on trust and confidence, so it is necessary to have faithful suppliers who will meet business needs and requirements in significant time.
The importance of supplier relationship management is high in business, if you want to create competitive advantage in supply chain. After getting clear idea about what you need to buy and what are your potential suppliers, you have to make shortlist of supplier sources that will meet your basic requirements. Try to deepen relationship with your key suppliers by explaining them your business plan and how it is going to be implemented. The bargaining power of suppliers must be utilised effectively in order to control cost of the business. Remember that your business reputation may be assessed by the record of suppliers and their ethical practises. So it is essential to do prior analysis before short listing suppliers for your business.
Ignorance is not bliss in business practises and if you are not responding to the business competition at the right time, then it may damage your market share up to severe extent. It is not right business strategy to get on with your own plans and neglect competitors. Competition is not in the form of business only, but it can be another product or service, which you are looking for licensed before someone else takes it up. Apart from analysing existing competitors it is also necessary to consider upcoming competitive threats. The entry of new competitors occurs only when there is possibility of creating competitive advantage over the current firms in industry. So it is always necessary to come up with unique innovative ideas or products to create niche in market.
Business suppliers and competitors can impact your business decisions to significant extent. By implementing regular review system you can not only evaluate the performance of suppliers but also judge the competitors strategies. This will help you bring proper understanding with suppliers and make you evolve out of the business competitors.