Why do consumers go to giant suppliers, especially in services industry? With a simple expectation that the brand implies quality and ease of doing business. But unfortunately, that’s no longer the case.
Over years, I have seen the following phenomenon in tech services industry.
Supplier starts small. Gets good business. The cost of doing business with them goes up. They become more rigid to do business with.
It is akin to linking expensive products with better quality and vice versa.
Things would be a lot different if consumers think long and hard about their needs. The choice of supplier must be made with those needs in mind, not just driven by size or brand.
What about these giant suppliers?
Either they make it reasonable to do business with them (for the premium they charge) or struggle with tough, nimble competition.