GT Advanced Technologies (GTAT) is a key equipment supplier to many of the world's leading solar, polysilicon and LED companies. Over the years, GTAT has grown to have a very large presence in Asia as most of the companies it serves are based there.
1. High switching costs
Equipment supplied to customers is often very deeply embedded into their manufacturing lines. Switching of suppliers at a replacement cycle might bring in equipment which is incompatible with other parts of the manufacturing line. Such incidents will bring about downtime or lower the productivity of the factory of which is very detrimental to the customer's business. This, therefore, discourages customers to switch suppliers at whim.
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