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Bargaining Power of Suppliers

The bargaining power of the suppliers are those forces that are the mirror image of the bargaining power of the buyers as it includes raising the prices of the products , reducing the quality and the availability of the products that can put a lot of pressure on the companies<br>

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Bargaining Power of Suppliers

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  1. Bargaining Power of Suppliers

  2. What is Bargaining Power of Suppliers? • The bargaining power of the suppliers are those forces that are the mirror image of the bargaining power of the buyers as it includes raising the prices of the products , reducing the quality and the availability of the products that can put a lot of pressure on the companies

  3. The competitive environment and profit potential are those aspects of the company that gets affected by the bargaining power of the suppliers. Here the buyers are the companies and the suppliers are those who supplies the products to the companies.

  4. The bargaining power of suppliers is one of the forces that shape the competitive landscape of an industry and help determine the attractiveness of an industry. The other forces include competitive rivalry, bargaining power of buyers, the threat of substitutes, and the threat of new entrants.

  5. Types of Suppliers

  6. Manufacturers and Vendors: Those who sells the products to the distributors, wholes sellers and retailers. • Distributors and Wholesalers: Purchase goods in medium/high quantity for sale to retailers or local distributors.

  7. Independent Suppliers / Independent Craftspeople: Sell unique products directly to retailers or agents. • Importers and Exporters: Purchase products from manufacturers in one country and export to a distributor in a different country. • Drop shippers: Suppliers of products for different kinds of companies.

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