BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A supplier group is powerful if there is no substitute for what the supplier group provides. Although artificial diamonds are fine for industrial applications, real diamonds are necessary for jewelry. Any groom who thinks otherwise is playing a risky game indeed.

Detailed explanation-2: -The Bargaining Power of Suppliers, one of the forces in Porter’s Five Forces Industry Analysis Framework, is the mirror image of the bargaining power of buyers and refers to the pressure that suppliers can put on companies by raising their prices, lowering their quality, or reducing the availability of their products.

Detailed explanation-3: -Suppliers have the power to influence price, as well as the availability of resources/inputs. Suppliers are most powerful when companies are dependent on them and cannot switch to other suppliers because of higher costs or lack of alternative sources.

Detailed explanation-4: -Supplier power is high if the buyer is not price sensitive and uneducated regarding the product. If the supplier’s product is highly differentiated, then supplier bargaining power is high. The bargaining power of suppliers is high if the buyer does not represent a large portion of the supplier’s sales.