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Suppliers of Key Inputs

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by

Carrie Guinares

on 21 November 2013

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Transcript of Suppliers of Key Inputs

In the arena of
Strategic management
Suppliers of raw materials are partners of the business organization should be taken with apprehension and concern.
Considered part of the competition
Potential to join the foray of producing a product or service and joining the direct competition with existing business they used to deal with suppliers.
Suppliers of Key Inputs and
Competitive force of Suppliers

Suppliers of
Key Inputs

Do not pose as a direct threat to competition.
Competitive force of Suppliers
items makes up large portion of product costs, is crucial to production process and affects product quality.
it is costly for buyers to switch suppliers.
they have good reputations and growing demand.
Role of Suppliers
to provide inputs or doing supportive role to the key players belonging to the middle box who are competing with one another.
This group includes suppliers of raw materials and other inputs to products and services being offered by the key player in the market.
Competitive force of Suppliers
they can supply a component cheaper than industry members can make it themselves.
they do not have to contend with substitutes.
buying firms are not important customers.
Full transcript