Here are a few reasons that suppliers index have power: * There are very few suppliers of a particular product * There are no substitutes * The product is extremely important to the buyer, they cannot do without it * The supplying industry has a higher profitability than the buying industry * Supplier switching costs relative to firm switching costs * Degree of differentiation of inputs * movement of substitute inputs * Supplier concentration to firm concentration ratio * Threat of forward integration by suppliers relative to the threat of backswept integration by firms * Cost of inputs relative to selling price of the product Power of Buyers/ Customers This is how much pressure customers can place on a business. If one customer has a large complete impact to affect a companys margins and volumes, then they hold up substantial power. Here are a few reasons that customers big businessman have power * Small number of buyers * Purchases of large volumes... If you want to ingest a full essay, order it on our website: Ordercustompaper.com
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