However, a weak bargaining power enables a particular business to access less costly raw materials or readily secure needed resources or production inputs that can translate to lower production costs and lower end-use market price. A strong bargaining power puts businesses at the helm of suppliers. The bargaining power of suppliers represents the level or degree to which the providers of raw materials can exert influence or pressure in a particular business or an entire industry. Defining, Explaining, and Understanding the Bargaining Power of Suppliers What Are the Effects or Impacts of Supplier Bargaining Power on a Particular Business? How Does this Power Affects Competition? The ability of a business to have access to this market or built and maintain productive relationships with relevant suppliers can determine not only its profitability but also its competitive advantage versus its competitors. Note that the market of inputs or input market provides or supplies the resources needed to make finished products.
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