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Tap city money is cash afforded a person that goes broke (tap city) in a high stakes poker game. The loser is afforded this courtesy so that they can raise the stakes in smaller, presumably less expert games, until they have the stake to return to the table. There are parallels in business. One doesn't want to negotiate such a hard deal with a suppler that one causes the supplier to be financially strapped. It is often more important to have a stable supplier. There is a related but different gambit in negotiation. After a successful negotiation, it is often wise to tell the adversary what a hard bargain the drove, even if you cleaned their clock. This allows them to "save face" and more easily negotiate another agreement when the opportunity rises.
Teaching Porter's five forces is a business school staple. The most successful incumbents in the competitive rivalry are likely to be the ones that have the most power in relation to the suppliers and the customer. Incumbents may be sheltered from new entrants by barriers to entry such as switching costs, regulatory burden, capital requirements, and more.
Switching costs are a big deal. Anyone who has ever tried to switch the brand of suture in the operating room from, say, Davis and Geck or Ethicon to say Gore knows how costly it can be in terms of staff time. Conversely, the new company needs to work hard to lower those costs by having a strong presence in the OR and translating the surgeons' preferences to the equivalent in their line. When a supplier stacks your shelves or makes it easy for your staff to order by providing an efficient digital platform, they may be providing a useful service but also increase switching costs.
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