Essential supplier control
What is Essential supplier control?
Essential inputs or access are controlled by suppliers whose terms or decisions materially constrain an entrant’s offer or economics.
How Essential supplier control works
The company can improve its customer experience while remaining dependent on upstream access. Supplier presence alone does not establish meaningful control.
Case studies tagged with Essential supplier control
Each link opens the passage tagged with this concept.
The question to ask of a company
Which input is essential, who controls access, and why can the company not readily switch or bypass that supplier?
Examples
- Netflix and Spotify: rights holders control access to licensed catalogs.
- Twilio: carriers control access to telephone networks.
Who names it
| Author | What they call it / where it appears |
|---|---|
| Porter | Bargaining power of suppliers; this label focuses on essential access |