Speedy Aircraft Maintenance is a regional provider of aircraft repair ser- vices. Speedy Aircraft's procurement department is
Question:
Speedy Aircraft Maintenance is a regional provider of aircraft repair ser- vices. Speedy Aircraft's procurement department is preparing to replace all its business computers, working from a budget of \($1,000,000\) to be spent over the next 4 years. Four suppliers have been identified that could bid on this replacement project. The first company, Quick Fix, is a local computer sales firm and their largest customer spends around \($200,000\) a year with them. The second company, Dellta, is a multinational computer manufac- turer favored by governments and large retail chains; their largest custom- ers spending around \($20,000,000\) - \($50,000,000\) with them annually. The third company, Kiata, is a multinational computer firm currently breaking into the US market, and their largest current customer worldwide provides about \($5,000,000\) a year in sales revenue. The fourth company, Electronics Express, is a consumer electronics firm whose sales include computers, although their most successful product lines are smart phones, smart watches, and related personal devices. The typical customers of Electronics Express spent an average of \($500,000\) each last year, but only an average of about \($1,700\) of that was computers. Consider the supplier preferencing model when answering the following questions.
Questions
1. Which of these four suppliers is most likely to consider Speedy Aircraft Maintenance to be a nuisance, meaning that this supplier is least likely to even answer an invita- tion to bid on Speedy Aircraft Maintenance's replacement project?
2. Which of these four suppliers is most likely to consider Speedy Aircraft Maintenance to be exploitable, meaning that this supplier will probably bid but not offer a particu- larly attractive price, because this supplier will not be upset if its bid does not win this business?
3. Which of these four suppliers is most likely to consider Speedy Aircraft Maintenance to be core, meaning they would both value Speedy's business and view the oppor- tunity as a good fit with their own business?
Step by Step Answer: