In this condition, as the name implies there will be interdependence between parties involved. Rolls-Royce and Liebherr-Aerospace had agreed to enter into a joint venture to develop manufacturing capability to develop UltraFan™ engine. The UltraFan™ is a geared design which is created founded on technology that would be in service from 2025. The power gearbox is used to deliver efficient power that is driven over a range of take-off thrusts. The joint venture is located in Friedrichshafen. In this system, Rolls-Royce will maintain the design definition and also the design integration. Liebherr-Aerospace is also found to play an important role in the creation of this compound. There is the majority of the design expertise that is found to be founded on the theories and structure of Rolls-Royce. Nevertheless, it is also found that the company Liebherr-Aerospace is also an important contributor. It cannot be refuted that these two companies for the production of the particular product are dependent on each other. The company is found to gain from this interaction. In the circumstance of vertical integration between Apple Inc and Pegatron, there will be interdependence between two parties (Krause and Ellram, 2014). The buyer asks the makers to maintain a level of trust. There is an interdependence that is observed in this situation. The companies are dependent on each other to ensure the sustenance of the other company. However, the established companies such as Apple and Rolls-royce Company is found to have more power. This is grounded on their intangible value of brand. These companies are found to have more power in the relationship constructed on the intangible brand value that is associated. This is however not always the case. This is explored in the section below.
In this condition, the seller is made to sell the product to a number of people and the buyer buy the product from many sources. This is observed in the situation of B2C markets. In the instance of retail apparel stores, similar trend is observed. The people are given a range of choices from a wide array of retail products. The product offering and the utility of the products are functionally the same (Chick and Handfield, 2014). They are attuned to having more independence. In these events, the supplier and the buyer have a share in the surplus value of the products. The managers in these circumstances make determination created on the likely benefits from collaboration. They need to factor in the cost and the return of investments (Rushton, Croucher and Baker, 2014). The role of collaborative partnership gains precedence in these instances. For example, in the case of Novartis, the sourcing, demand management, efficiency of the process and the value of management was comprehended. The company is a name brand that factors in the supplier performance and innovation before entering into collaboration with the value management.
The people can buy the same product range from a number of products. The supplier dominance is observed in some situations. They are explored in the section below.