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Essay heading: Power of Suppliers and Power of Buyers
 
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Issue: Business
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Date added: October 22, 2003
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No of pages / words: 6 / 1562
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Say a company like Boston Pizza decides to buy pizza crust from a different supplier because of a rise in prices of their current supplier. This change requires the company to find a supplier with a similar type of pizza crust at a better price. This change in suppliers is relatively easy for Boston Pizza because of the large amount of other companies that supply pizza crusts to restaurants at competitive prices...
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This shows that for the restaurant industry it is easy and cost efficient to switch from one supplier to another, depending on the product, because of the vast rate of competition between the supplying companies. Another factor affecting the power of suppliers is the threat of forward integration. The restaurant industry does not have to fear this at all...
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