Bargaining power of suppliers
(Redirected from Supplier power)
- level of supplier concentration in the sector (less suppliers more power)
- dependence of quality of the product on quality of the supplies (more quality products needed increases supplier's power)
- uniqueness of the product supplied (eg. due to patent restrictions)
- cost of switching suppliers and possibility to do it
- share of the supplier in the creation of producers' profit in the industry
- possibility of the supplier to start production of the final product (supplier change to competitor)
- relative intensity of competition in the supplier industry.
- Chae, S., & Heidhues, P. (2004). Buyers' alliances for bargaining power. Journal of Economics & Management Strategy, 13(4), 731-754.
- Porter, M. E. (1979). How competitive forces shape strategy
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