2055241
Description
Mind Map by Sandra Reed, updated more than 1 year ago
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Created by Sandra Reed
over 9 years ago
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Industry Rivalry - Bargaining power of
suppliers
- Bargaining power of suppliers
- High differentiation
among the products
from suppliers such
as if the supplier has
a strong brand itself
- Low presence of substitues
- High switching costs for
the customer in the case
of a supplier change
- Low significance of the
procurement for the
suppliers, which means
the purchasing volume
from a supplier makes
only a small percentage
of the total revenue
- High cost relative
importance of shopping for
the company, either the cost
have a high proportion of
the total cost of the
purchase of the company, or
the starting material has a
high impact on cost or
differentiation position
- High concentration of suppliers:
Oligopolistic (or even monopolistic)
market structure at the supplier gives
the company few alternatives to
alternative suppliers and makes it easier
for suppliers to enforce high prices
- Low risk of backward integration: The company can not
credibly threaten to even produce the corresponding
precursors (at least less credible than the supplier can threaten
a forward integration)
- High differentiation
among the products
from suppliers such
as if the supplier has
a strong brand itself
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