Unformatted text preview: suppress the probability of the industries from which they buy materials are: (a).buyer group concentration: if the buyers are concentrated, meaning that there are only a few large buyers, and they buy from a large number of suppliers, they can pressure the suppliers to lower costs. (b).buyer’s costs: the greater the importance of an item is to a buyer, the more sensitive the buyer will be to the price it pays. (c). Degree of standardization of supplier’s products: the degree to which a supplier’s product differs from its competitors’ affects the buyers’ bargaining power. For standard or undifferentiated product, the buyer can play one supplier against another until it gets the best combination of features (price and service). (d).Threat of backward integration: the power of buyer is enhanced if there is a credible threat that the buyer might enter the supplier’s industry....
View Full Document
- Spring '08
- buyer, supplier, Knuth's up-arrow notation, Tetration