Some suppliers are tough to crack
They have something you need and while you can’t agree to pay the earth for their goods, your company’s offering is somehow incomplete without them.
So it was with iTunes, Apple’s digital music distribution service. Despite its commanding position in the market, it lacked one key product – The Beatles. Now that looks likely to change, as rumours are rife today that the remaining group members, and the widows of John Lennon and George Harrison, have agreed to put their music out there, online.
That the Beatles were able to hold out for so long is down to key factors early in the group’s career. Not only did John and Paul write their many hits, they also owned the publishing company, Northern Songs, which owned the rights to their music. So intellectual property ownership is vital.
This is coupled with two other key factors in accomplishing a strong negotiating position. One, the group had incredible market share during its early career, at one point said to be outselling, not just the most popular US groups, but all US groups put together. Secondly, longevity: The Beatles are continually referenced by other artists, which makes younger generations seek out their tunes.
But all suppliers have their weak points. The Beatles’ was that their grip on their music was beginning to weaken. Copyright runs out after 50 years, and 2012 marks the 50th anniversary of their first single, Love Me Do.
Despite this, I’ve a sneaking suspicion this supplier may be singing all the way to the bank.
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What clever, talented scousers, not only fantastic at their trades (writing songs and performing them) but canny business folk too (by the way I’m a less clever & talented, but very proud, scouser). Long may they endure. My sons, who were born in 1988 & 1991, love The Beatles and will probably pass them on to their eventual offspring.
To crack the strongest suppliers, take pain in seeing into their cultures, staff and line relationship, strategies, key staff’s background, credit status and government intervention (if any). Why not go for integration, almagamation or partnership at least were it in vain at the end of the day? Such strategies will be mutually beneficial.
A Scouser who can hang onto their own stuff for 50 years without it getting nicked might think they’re doing pretty well.
Ah, Mr (or Miss) Cynic, you fell for the stereotype that my point about the Beatles completely dicredits.
Yes, Roy. Now that I see my comment in print, I’m not so sure it was clever. Sorry, Scousers, I didn’t mean it. I have had very happy experiences in Liverpool.