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Is the suppliers ability to influence the price they charge for supplies?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.
Is the ability of buyers to affect the price of an item?What is Buyer Power? Buyers have the power to influence price and the quantity of products sold. Powerful buyers can bargain on volume or switching costs or they can find substitute products. Price sensitivity also impacts the buyer/seller relationship.
Which company is using a broad market and low cost strategy?In the broad-low cost strategy, the firm is focused on providing a cost-based advantage over a broad market group. An example would be Wal-mart. Here Wal-mart has a low-cost model that competitors have difficulty matching. They are in a sense ” as they appeal to a wide group of customers.
What analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry?Porter's Five Forces Model is an important tool for understanding the main competitive forces at work in an industry. This can help you to assess the attractiveness of an industry, and pinpoint areas where you can adjust your strategy to improve profitability.
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