6.2 Price pressure between related businesses of different Orientations
The price pressure between related businesses of different Business Orientations in one business sector is, besides the influence of invisible market forces, also an expression of the balance of power between two cooperating businesses, see the scheme below:
a) The strong Product makers define at what prices Self-Services will sell their product to customers. Some sellers must also accept the style of a product’s presentation, for example in an automobile industry, where the Self-Service Orientation (dealers’ networks) is for the most part under the (price) control of the Product Orientation.
b) A second-hand product is closer to its pure utility value. Its price is not defined by a Product maker but by the Market and the owner. The owner of the car influenced by the market situation tells the second-hand car dealer at what price he wants to sell his car. Generally, prices of commodity-like goods tend to be controlled by Self-Services.
c) Self-Services which not only sell products but use the same products for their service may be able to set prices even of renowned brand-name products. Mobile phone operators often offer new mobile phones at special prices in order to attract users to their Self-Service.
d) Strong Self-Services may push Product makers into the position of suppliers of commoditized no name products by forcing these suppliers to deliver items with the label arranged by the Self-Service.
e) Dependent Experts are susceptible to having price and other conditions of their work dictated by their clients.
f) Independent Experts normally set the price and limits for their work themselves.
