In addition to all the problems experienced by weaker suppliers, it is inevitable that every customer is going to aim to reduce the margins that the supplier can make on its business. This is likely to put the supplier or company who is the weakest link in a chain under considerable pressure. In electronics this is often a company half way through the chain with profit margins being “squeezed” from both sides. Although the traditional short-term strategies of making money seem most appropriate to powerful players, in the longer term, more problems are created. Each time a company goes into receivership within a chain, an alternative has to be found and new relationships developed which are costly in management resources. This long-term effect of significant financial pressure is again likely to reflect on the performance of the new company who has gained the replacement business, unless they turn out to be more adept at dealing with supply chain problems than their predecessors.