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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 952 |
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Also, backward integration is highly unlikely because tobacco leaf processing corporations do much more then supply the product, as they prepare, manufacture, and market the products using competencies lacked by suppliers.
The third force in Porter's model is the bargaining power of suppliers. This bargaining power associated with the suppliers is contingent on the diversification and number of suppliers available...
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This bargaining power associated with the suppliers is contingent on the diversification and number of suppliers available. Accordingly, the fewer suppliers equate a bigger bargaining power over the buyer for the associated supplier, which is present in the tobacco leaf industry. For example, their are four major tobacco players in the world located within two hundred miles of each other, therefore, this represents a select amount of alternatives to the buyer...
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General points of the essay
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