Essay heading: 5 Forces

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July 4, 2001






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If the supplier does not depend on your business, you will have less power to negotiate. Of course the opposite is true as well. Wal-Mart has significant negotiating power over its
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How Much Power Do Your Suppliers Have Over You? Any business requires inputs—labor, parts, raw materials, and services. The cost of your inputs can have a significant effect on your company’s profitability. Whether the strength of suppliers represents a weak or a strong force hinges on the amount of bargaining power they can exert and, ultimately, on how they can influence the terms and conditions of transactions in their favor...
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