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Business
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| Number of pages / Number of words: |
3 / 688 |
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Suppliers of raw materials, components, and services (such as expertise) to the firm can be a source of power over the firm. Suppliers may refuse to work with the firm, or e.g. charge excessively high prices for unique resources.
* supplier switching costs relative to firm switching costs
* degree of differentiation of inputs
* presence of substitute inputs
* supplier concentration to firm concentration ratio
* threat of forward integration by suppliers relative to the threat of backward integration by firms
* cost of inputs relative to selling price of the product
This 5 forces analysis is just one part of the complete Porter strategic models...
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Suppliers of raw materials, components, and services (such as expertise) to the firm can be a source of power over the firm. Suppliers may refuse to work with the firm, or e.g. charge excessively high prices for unique resources.
* supplier switching costs relative to firm switching costs
* degree of differentiation of inputs
* presence of substitute inputs
* supplier concentration to firm concentration ratio
* threat of forward integration by suppliers relative to the threat of backward integration by firms
* cost of inputs relative to selling price of the product
This 5 forces analysis is just one part of the complete Porter strategic models...
Essay fragment
General points of the essay
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