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Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
4 / 980 |
Essay's paper body
SM can demand for lower prices and since SM is their only sole client, CyGy has the tendency to give in. If buyers are concentrated, this gives them power. Also, buyers exercise more power when they are large-volume buyers
D. Substitute Products
To keep the business going, many local suppliers of SM had no choice but to increase their prices...
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Thus, SM was prompted to consider buying imported good to replace the local ones they could no longer afford. The entry of cheap manufactured clothes from China was squeezing the margins of CyGy Garments and they place a limit on profitability within the garment industry in the Philippines. Naturally, customers or buyers prefer to buy cheap but imported quality products...
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