Leg Zero: The Bargaining Power of Suppliers. Porter´s Industry Analysis. Part 2.
Find attached my set of slides about the Bargaining Power of Suppliers. These key determinant factors are likely to be important in determining the bargaining power of suppliers relative to the company who buys them as inputs for production.
It is important to remark the impact of supplier´s bargaining power upon firm´s profitability is complex. It is a dynamic analysis. Because all these key determinant factors are acting simultaneously, and it is an art to forecast an industry profitability with all these factors in place. Even if you create a financial model with all these variables in place, your return on investments (ROI) can change from one day to another. For example, there are many maquiladoras in Central America who have developed their profits by exporting their products to only one firm in the USA. A shift in US American trade policies to Central America can barren or even destroy the “textiles” exports industry in the region.
To download the presentation in PDF Format, click here: suppliers key determinant factors Part II Porter
If you have any doubt or question, do not hesitate to contact me. I will be happy to clarify through examples. Tomorrow I will develop a very important topic: Market Leadership or Market Power and Influence. We need to review some concepts here, before continuing with the Buyer´s bargaining power force.
All the best for you, and wishing you a great weekend. Cheers!!!
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