Insufficient information

Assumed reason for increase

in price
of
Zurins
buying
1.Genuine:- Increase in costs
of
alloy (Raw
power. (Ericcsons
Reduce
Volume labor etc.)
material,
dependence on
of
Capacity and policy
Zurin)
2.Advantage of our dependence.
XF1000(nullify

restraint.
Ericcsons
economy of
scale)
Cascading
effect:- Reduce
overall volume
purchase.
Withdraw future
orders

competitors.

Negotiate with
Ericcson

Reduce
dependence on
Ericsson

Acquiring a
steel
company
(financials
unavailable
)

Use the
leader/follower
approach. Develop a
secondary supplier
through technology
transfer, reducing
dependence on
Ericcson.

More steel from

French company,
This option will
GORDIER?

take few months

and till that
time, we
purchase from
Erricson.

Long term
Solution :Vertical
Integration

Need information
about the
bargaining power
of OEMs

Source from
other companies
like Hiromishi OR
Viktor Tredzk in
Budapest.
Pass on the cost
to the OEM, if
possible.