Bargaining power of suppliers and buyers

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samiaseo222
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Bargaining power of suppliers and buyers

Post by samiaseo222 »

Smartphones are another substitute. However, they pose a small threat, as they do not have as many options as laptops, are smaller, have less memory, etc. In general, the threat from substitutes is low, as laptops offer the greatest ease of use and the largest number of additional functions.

Bargaining power of suppliers and buyers

We have two final forces before us: suppliers and buyers. I will describe them together, since their analysis proceeds in the same way. First, we must consider the groups and organizations that the philippine cp number company being analyzed pays to supply a product or service. When analyzing the attractiveness of an industry alone, only the largest suppliers will suffice. In the case of laptop manufacturing, these are the parts manufacturers, laboratories, and laptop shipping companies. Next, we need to determine their power of influence in the company. In other words, to what extent our suppliers "dictate terms" to us. This can be done using a scale of 0 to 5.

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In our case, it will usually be from 0 to 2. The same should be done with buyers. Remember, however, that the buyer is not necessarily just "John Doe" who will use our product. Buyers are also distribution channels, i.e. in this case hardware stores, companies, and sometimes state institutions. Here, too, it is necessary to determine the strength of the influence of buyers on the analyzed company. As far as individual customers are concerned, it will be high: the product is ultimately addressed to them. The influence of hardware stores is somewhat lower. As for the other types, they represent a small fraction of the total number of buyers, so their impact strength is low.
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