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The Perks and Pitfalls of Knowledge Diffusion in the Supply Chain
Stockholm University, Faculty of Social Sciences, Stockholm Business School.
2013 (English)In: IMD - Tomorrow's Challenges, no October 2013Article in journal (Other academic) Published
Abstract [en]

Do you collaborate with and learn from your suppliers, or are you serving them the knowledge to compete with you head-on on a silver platter? This question is increasingly relevant in today’s global competitive environment. Firms are routinely leveraging global sourcing to gain cost advantages but competition nowadays occurs between supply chains, rather than businesses. Thus keeping an eye on your supplier’s ambitions is vital. Case in point, just look at the ongoing patent infringement lawsuits between Apple Inc. and Samsung Electronics Co. Apple turned to Samsung as a supplier for its new iPod and iPhone products back in 20051. At first the two companies jointly developed the components, which gave Samsung an insight into Apple’s technology and operations. Being the only supplier for the processors, Samsung also gained critical knowledge on Apple’s prediction of the market size for the iPhone. In 2010, Samsung launched its own smart phone and has since become Apple’s largest competitor. Today, Apple still remains dependent on Samsung, but it is trying hard to diversify its supplier portfolio.

Place, publisher, year, edition, pages
2013. no October 2013
National Category
Business Administration
Identifiers
URN: urn:nbn:se:su:diva-148621OAI: oai:DiVA.org:su-148621DiVA: diva2:1154187
Available from: 2017-11-01 Created: 2017-11-01 Last updated: 2017-11-06Bibliographically approved

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