Contract longevity
No, so it is awarded per model so let say there is a new model that a customer launches and there is a life-time of that order so let say that model go to run for six years or seven years we are nominated as a supplier so there are categories of products like dials for example which run like that. If you talk of decal so fundamentally these are the items that are refreshed every year at an average so the color change the shape of the decal changes but the model that is awarded to you normally continues unless a supplier does not perform upto the expectation of the OEM.
There may not be a barrier to entry however that wouldn’t mean a lot of people want to enter that business. Switching Costs are always there, for an OEM finding a new and reliable partner is not that easy, plus they can’t be sure if the New Vendor will deliver the products on time and maintain the desired quality. "There has to be a serious error in the quality of the products delivered or the financial status of the vendor has gone bad/worsening " or if a similar product is available at a significantly lower cost and same quality. only then the OEM will switch. These things don’t happen so often. Taking SJS case in point, there are no such eventualities.
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