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Essay Details:
Essay text:
Suppliers would prefer to sell to
you at the highest price possible or provide you with no more
services than necessary. If the force is weak, then you may be
able to negotiate a favorable business deal for yourself.
Conversely, if the force is strong, then you are in a weak
position and may have to pay a higher price or accept a lower
level of quality or service.
Factors Affecting the
Bargaining Power of Suppliers
Suppliers have the most power when:
• The input(s) you require are available only from a
small number of suppliers. For instance, if you are
making computers and need microprocessors, you will
have little or no bargaining power with Intel, the
world’s dominant supplier...
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