{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Supplier or Buyer Power 91211

Supplier or Buyer Power 91211 - • Supplier...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Supplier or Buyer Power How suppliers or customers extract value Buyer Power Buyer concentration and volume of purchases Few vs. many customers Product differences Likelihood of finding equivalent product Availability of substitutes Price/performance tradeoffs Threat of backward integration Ability to become a competitor Switching costs Threat of switching suppliers Price Sensitivity (Not technically a source, but reason for exercising buyer power) Supplier Power Supplier concentration (e.g., Microsoft)
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: • Supplier concentration (e.g., Microsoft) – Few vs. many suppliers • Supplier volume (e.g., Campbell’s and Storehouse Markets) – Large vs. small purchase decisions • Product differences (e.g., ethical drug manufacturers vs. generic drug manufacturers) – Dependence on unique features • Threat of forward integration – Ability to become competitor • Large vs. small switching costs (e.g., Bloomberg terminals)...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online