TOO CLOSE FOR COMFORT - THE STRATEGIC IMPLICATIONS OF GETTING CLOSE TO THE CUSTOMER

While getting close to the customer is widely recommended as an obviou s way of serving the customer better, there is no clear demarcation be tween being close to the customer and being customer-driven. No longer content with the ability to anticipate customer demand, many supplier s are seeking to influence this demand, moving from being reactive to gently proactive. Increasing involvement in the customer's business ma y help lock in the customer, but it also leads to increasing involveme nt of the customer in the supplier's business, locking in the supplier as much as the customer. This incremental integration has important s trategic implications that firms must examine carefully.