The bargaining power of suppliers aims to

shiyabulsa@gmai

Beyond the basics to be able to apply this technique. Thinking about that, let's understand once and for all how Porter's 5 forces work. Based on this, you will have the best conditions to develop your analysis, without leaving any element aside: 1. Rivalry between competitors The first force is the rivalry that exists between competitors, that is, what is the degree of competition that exists. Some markets are uncompetitive, but this may indicate that demand is not

as high or that the product is becoming obsolete (which will be determined when Jiangsu Mobile Phone Number List analyzing the fourth force). ADVERTISEMENT On the other hand, some markets are extremely saturated, with many competitors for a limited number of customers. In that case, your power will be much less. Some questions that will help you analyze this point are: How many competitors are there in the sector? What is the situation of the competitors? Do they compete by price or by other differentials? 2. Bargaining power of suppliers The bargaining power of suppliers aims to determine how much your position in the market is in the hands of whoever provides raw materials





. The idea here is simple: if the number of available suppliers is low, your control will be less, since others will be in a comfortable position to increase prices, deadlines and other terms of the agreement between you. When the number of options is large, in turn, the situation is reversed and you become in control. From there you can buy cheaper and make demands, such as faster delivery and easier payment terms. The questions that serve to discover the bargaining power of suppliers are: How many sup