Question

How to differentiate supplier bargaining
power with that of buyer bargaining power in
context of Porter's five forces model. Give
examples to justify your answer.
(Answer in 150 words)​

Answer 1

Answer:

kglfupktaiglgiyo8754

Answer 2

Answer:

Supplier Power (one of Porter’s Five Forces)

by Jim Wilkinson on July 24, 2013 in WikiCFO

See also:

Supplier Power Analysis

Porter’s Five Forces of Competition

Threat of New Entrants

Buyer Bargaining Power

Threat of Substitutes

Intensity of Rivalry

Supplier Power Definition

In Porter’s five forces, supplier power refers to the pressure suppliers can exert on businesses by raising prices, lowering quality, or reducing availability of their products. When analyzing supplier power, you conduct the industry analysis from the perspective of the industry firms, in this case referred to as the buyers. According to Porter’s 5 forces industry analysis framework, supplier power, or the bargaining power of suppliers, is one of the forces that shape the competitive structure of an industry.

The idea is that the bargaining power of the supplier in an industry affects the competitive environment for the buyer and influences the buyer’s ability to achieve profitability. Strong suppliers can pressure buyers by raising prices, lowering product quality, and reducing product availability. All of these things represent costs to the buyer. Furthermore, a strong supplier can make an industry more competitive and decrease profit potential for the buyer. On the other hand, a weak supplier, one who is at the mercy of the buyer in terms of quality and price, makes an industry less competitive and increases profit potential for the buyer.

Explanation: