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Bensaou's Mode - Coggle Diagram

- - - - Stable demand
      - Limited market growth
      - Concentrated market
      - Few established players
    - - Little innovation and improvement in the product
    - - Products based on mature and well-understood technology
      - Occurs with technically complex products
    - - High buyer-specific investments
      - Low supplier-specific investments
  - - - Low buyer-specific investments
      - High supplier-specific investments
    - - Based on new technology developed by suppliers
      - Product is technically complicated
    - - Important and frequent innovations and new functionalities in the product category
    - - Significant engineering effort and expertise required
      - Heavy capital investments are needed
    - - Supplier is "captive" due to significant buyer-specific investments
      - Difficulty for the buyer to switch to other suppliers
  - - - Low buyer-specific investments
      - Low supplier-specific investments
    - - Product is simple
      - Based on mature and well-understood technology
    - - Little innovation and improvement in the product
    - - Fluctuating demand
      - High market growth
      - Fragmented market
      - Many established players in the market
    - - Relationship is transactional
      - Buyer and supplier primarily interact through the market
      - Little long-term commitment or collaboration
  - - - High buyer-specific investments
      - High supplier-specific investments
    - - Product is technically complex
      - Based on new technology developed collaboratively by both buyer and supplier
    - - Important and frequent innovations and new functionalities in the product category
    - - Both the buyer and supplier have made significant investments specific to each other's needs
      - Difficult for them to switch to other partners
    - - Relationships are collaborative and long-term
      - Both parties work together to create new value
- - - - Performance are crucial for understanding the effectiveness and success of buyer-supplier relationships in Bensaou's model.
    - - can stem from the other's dependence on them
      - interconnected in a relationship
    - - impact the dynamics of a relationship in Bensaou's model.
      - illustrate how power and dependence can vary.
    - - The balance of power can shift over time in a relationship
      - decrease as the dependent party finds ways to reduce their reliance on the other party.
    - - requires time, skill, and information.
        
        better management of buyer-supplier relationships.
  - - - produce desired results with minimal waste, cost, or effort.
      - efficiency include process integration, information sharing, and lean practices.
    - - involves communication, trust, and mutual understanding between the buyer and supplier.
      - lead to improved problem-solving, more efficient processes, and better overall performance.
    - - Understanding the effectiveness and success of buyer-supplier relationships in Bensaou's model.
    - - to adapt to changes in the market or production environment.
      - include contractual terms, production capabilities, and innovation practices.
    - - enotes the ability of the buyer-supplier relationship to generate new ideas, products, or processes.
  - - - understanding the level of bonding between the buyer and supplier in Bensaou's model
    - - represent financial interdependencies between the buyer and supplier.
      - include shared investments, cost-sharing arrangements, and mutual financial benefits.
    - - encompass both formal and informal links that connect the buyer and supplier.
      - include contractual agreements, joint ventures, and strategic alliances.
    - - shared norms and standards of behavior necessary for the relationship
      - include cultural compatibility, shared values, and mutual respect.
  - - - understanding the level of technological complexity and financial commitment between the buyer and supplier in Bensaou's model
    - - pertains to the technical sophistication of the product or service being exchanged.
      - can be influenced by factors such as technology maturity, innovation rate, and design change frequency.
    - - commitments made by both the buyer and supplier in the relationship.
      - dedicated buildings, tools, and equipment for the supplier.
      - covers intangible investments, such as time spent learning the supplier's routines, relationship development, and information system synchronization.