![]() ![]() This analysis of the bargaining power of suppliers can assist enterprises in understanding the degree to which they are dependent on their suppliers and how weak they are in changing the supplier ecosystem. Now, this concept is a pretty standard part of any business strategy. This framework mirrors the image of the bargaining power of buyers and attributes to the stress that suppliers can put on enterprises by increasing their costs, reducing their product or service quality, and diminishing the availability of their products. ![]() If you are new to this, the bargaining power of suppliers is one of the forces in Porter’s Five Forces Industry Analysis Framework which was introduced by a Harvard professor, Micheal Porter. Some of them are not aware of the concept, while the rest are not familiar with how it impacts their businesses. Knowingly or unknowingly, most procurement professionals are affected by the concept of the bargaining power of suppliers. How does it affect your business and how can it be minimized?
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