Evolution of opportunities
The main problem companies have in penetrating a new market is obtaining a fair opportunity from a customer to quote against an incumbent supplier. Most of the time, the opportunity is just a benchmarking exercise to get the incumbent supplier to lower their costs. Customers used to be reluctant to change suppliers due to the cost, resources, and time associated with the transition, let alone quality and supply concerns. All of these factors make it hard for a company to grow market share.
But a change, or shift in perception occurred during the middle of the market collapse in the last four years.
Companies have begun to recognise that markets are no longer restrained to geographical regions. A global economy drives demands for products, not just specific regions. Also, the market collapse has caused a 'rethink' from top to bottom in all companies on how to reduce costs. No longer is it enough to just shave off labour by reducing the workforce, but costs needed to be lowered by controlling the supply chain. With these two changes, those scarce opportunities are now abundant.
Companies are now looking for global strategic supply chain partners, shedding the philosophy that the incumbent is the only solution. They are looking for suppliers that have a global footprint, suppliers who can provide global logistical solutions, suppliers who can provide cost reductions based on global demand, suppliers who can manage quality and service on a global platform, suppliers such as TR Fastenings.