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Leg Zero: The Bargaining Power of Suppliers. Porter´s Industry Analysis. Part 1.

Good day to all of you. Let´s pray for peace in this world, please. I can´t explain how horrified I was to see at the TV the latest attack in Las Vegas, and I do really mean when I say,  we all can pray for peace and comfort for the affected families. “And the peace of God, which transcends all understanding, will guard your hearts and your minds in Christ Jesus”. Philippians 4:7.

may dthe peace of christ.jpg

Let me continue with the purpose of this blog. Because I do need to finish with Porter´s Industry analysis model in 18 days. Yes, in 18 days!!! The Volvo Ocean Race will start in Alicante then, and I need to finish my Leg Zero as soon as possible. As it is for the Volvo Ocean Race, the Leg Zero race schedule is my pre-training strategy workout with Porter´s Industry Model… and we have a lot to cover by then.

Back to business, today is the turn to share the topic of Bargaining Power of Suppliers. First of all, Professor Robert Grant remarks, “the analysis of the determinants of relative power between the producers in an industry and their suppliers is precisely analogous to the analysis of the relationship between the producers and their buyers or customers”. There are two groups of key determinant factors which are important in determining the strength of suppliers power.

1.Price Sensitivity

2.Relative Bargaining Power

I am attaching a presentation created for you today.  I hope you can understand the first group of key determinant factors: The price sensitivity group. If you have problems to see the slides, you can click the link provided below to download the PDF version of it. See you tomorrow, blessings for all of you.

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To download this presentation in PDF Format, click here:

suppliers and buyers key determinant factors Porter1


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