Porter’s Five Forces
(Supplier Power)
• Bargaining Power of
Suppliers Increases with:
– Monopoly / Small Number of
Suppliers
– Supplier’s Threat to Integrate
Forward
– Differentiated Products / Low
Number of Product Substitutes
/ High Costs to Switch
Suppliers
– Closed Industry Information: if
Information is Open in the
Industry, Suppliers have less
Bargaining Power
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