JOURNAL ARTICLE

The Dangers of Becoming Too Dependent on a Single Customer.

  • Published In: Harvard Business Review Digital Articles, 2023. P. 1 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Kenny, Graham 3 of 3

Abstract

This article discusses the dangers of becoming too dependent on a single customer and provides strategies for managing this dependency. It emphasizes the importance of recognizing and managing interorganizational dependencies, as any weak link in the chain can pose a business risk. The article presents real-life examples and offers three ways to minimize the unpredictability of dependencies: spreading risk and anchoring it, knowing customers' pressure points, and decreasing net dependence. It concludes by highlighting the need for organizations to examine power relationships and ensure they do not restrict strategic choices. [Extracted from the article]

Additional Information

  • Source:Harvard Business Review Digital Articles. 2023/11, p1
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2023
  • Accession Number:173580178
  • Copyright Statement:Copyright 2023 Harvard Business Publishing. All Rights Reserved. Additional restrictions may apply including the use of this content as assigned course material. Please consult your institution's librarian about any restrictions that might apply under the license with your institution. For more information and teaching resources from Harvard Business Publishing including Harvard Business School Cases, eLearning products, and business simulations please visit hbsp.harvard.edu. (Copyright applies to all Abstracts.)

Looking to go deeper into this topic? Look for more articles on EBSCOhost.