Question

Suppliersarepowerfull when​

Answer 1

Ответ:

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.

Объяснение:

Answer 2

Suppliers can be powerful in a business context when they have a significant degree of influence or control over the supply of goods or services that a company relies on. This power can manifest in several ways:

1. Limited Supplier Options: If there are only a few suppliers that provide a critical input to a business, those suppliers have more negotiating power. The company may be dependent on these suppliers, making it challenging to switch to alternatives.

2. Unique or Specialized Products: Suppliers who provide unique or highly specialized products that are not easily substitutable can wield power. This uniqueness can give them leverage in negotiations.

3. Cost Structure: If a supplier provides a substantial portion of a company's costs, they can influence pricing and terms. Any increase in the cost of inputs can directly impact the company's profitability.

4. Switching Costs: High switching costs, such as retooling manufacturing processes or retraining staff to use new materials, can make it difficult for a company to change suppliers, giving the supplier more power.

5. Brand Reputation: Suppliers with strong brand reputation or industry recognition may be able to command higher prices or dictate terms because their products are seen as superior.

6. Access to Key Resources: Suppliers who control access to essential resources, like rare minerals in the tech industry, can exert significant influence.

7. Long-Term Relationships: Long-standing relationships with suppliers can lead to preferential treatment and better terms.

8. Government Regulations: Sometimes, suppliers can be powerful due to government regulations that limit competition or provide advantages to specific suppliers.

To effectively manage supplier power, businesses often employ strategies such as diversifying their supplier base, negotiating favorable contracts, building strong relationships with suppliers, and seeking alternative sources for critical inputs. Understanding and managing supplier power is a crucial aspect of supply chain management and strategic planning for many businesses.