Sometime, firms reposition their values. The example of IBM can be used to capture the meaning. IBM is found to move along the value chain by development of IT services. The company incorporated the notion of the “cloud” and other market developments. These were found to change over time. The company purchased the PwC Consulting to revamp the existing policies. It can be comprehended from these analysis that positioning of the products is imperative to make sales and to sustain. Changing consumer demands, markets, economic or political events will lead the companies to develop the need of other policies related to position. Apart from this, each company will try to have its own unique niche consumer base to develop the strategy. Not all companies can successfully acquire new companies or change the capability development similar to IBM. In this paradigm, the notions of the “zones of manoeuvre” need to be considered.
If the supply of the products is limited, then the supplier can have more autonomy over the control of the processes (Cravens and Piercy, 2006). An electric company such as Duke Energy will have more dominance over the sales of the product if there are no other competing energy company in the vicinity.
Apart from these tangible factors, there must be consideration of the innate factors of the situation (Cannon and Perreault, 1999). It can be comprehended that there are other important factors such as trust and the relationship that is forged in these situation. Hence these intrinsic factors need to be considered in order to derive the solution.
To conclude, the buyer supplier relationship is important for construction of the value chain. Value chain needs to be considered in order to meet the demands of the consumers. The value chain enables in the creation of cohesive workflow and it depends on the different stakeholders. The companies try to change their service deliverables and the value chain to meet the changing demands of the situation. They need to ensure that these processes flow cohesively in order to meet the demands of the consumers. Fundamentally, these are dependent on the supply and demand. Based on these theories of supply and demand, there can be development of four generic model. There must be consideration of the intrinsic factors such as trust and cohesive relationship to meet the demands of the situation. In order for this function, there must be certain intangibles that must be factored. A trust or an intricate bond needs to have been formed between the stakeholders in the process.