ECO.6:2 - Problem

Before a dedicated investment, several suppliers may compete. After it, changing supplier can destroy tooling, knowledge or time. Initial competition therefore does not settle how the parties will adapt or bargain later. Detailed specifications cannot economically anticipate every disturbance.

Calling the problem “organization change” too early can also hide simpler answers: reduce technical dependence, retain a second source, or improve an agreement within the existing organization.