20400520, Entry#7, Relationship

Relationship
It is very common in Korea using subsidies to help cell phone manufacturers to sell more products in telecommunication industry. Using subsidies, phone companies (wireless telegraph operators) such as SKT and KTF (in this article AT&T) would make more revenue from telephone call charge and can reinforce the relationship with manufacturers.
In Korea, most of cell phone manufacturers distribute their products to three main phone companies. However, this kind of distribution is seems not to be common in US. It says in the subtitle “the phone company may cut the iPhone's price to boost demand—and cement its relationship with Apple.” AT&T wants to deal with Apple exclusively and did subsidize Apple. So the partnership or relationship really matters, more than Korean situation like supplier-producer concept.
Doing a Business in equal status comes from good relationship and this relationship requires not only money but also trust and confidence. To say in opposite direction, a relationship makes more values to both parties.

reference:
http://www.businessweek.com/technology/content/apr2008/tc20080430_591776.htm?chan=rss_topStories_ssi_5

20400520 Jeon Keong Won