Political Framework Management
The deregulation of the telecommunications and air travel markets in Europe has led to undreamed-of competition and low prices. Without the corresponding regulatory interventions, purchasers in these suppliers ’markets would still be in a very difficult negotiating position today.
In exactly the same way, the hurdles created by regional oligopolies can be overcome through the abolition of import duties (for example, on steel from Asia). If illegal cartels or price agreements are suspected, an individual company can report its suspicions to the antitrust authorities. Similar, close cooperation with the competition authorities in advance of a planned merger has the aim of preempting too much concentration on the supplier side (and hence excessive supply power). Suppliers will also often attempt to establish their own technologies as standard, restricting the customer's freedom. The customer needs to take timely action to nip these kinds of efforts in the bud.
Left to its own devices, a company generally has little power to influence the political status quo. So it is important for it to know exactly what it wants to achieve and then work consistently toward this goal by lobbying in industrial associations, mobilizing others who share the same views, and carrying out targeted media work. If undertaken correctly, political framework management has the ability to shift the balance between supply and demand power like no other strategy.