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This means it is difficult to switch suppliers if they start exerting power.
?« It is not obliged to contend with other substitute products for sale to the industry. This is the case if the suppliers role is technical and no other suppliers can offer this product/service.
?« The industry is not an important customer of the supplier group. If the industry that the supplier is selling to, does not represent a large proportion of its sales then it can exert power.
?« The supplier?¦s product is an important input to the buyers business. Supplier?¦s product is essential to the buyer then they can charge whatever price they wish, and the buyer will pay because the product is essential...
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