Porter's Five Forces framework helps in identifying the bargaining power of suppliers and buyers by analyzing the level of competition in the industry. The bargaining power of suppliers is determined by the number of suppliers, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another, and the possibility of them forward integrating. On the other hand, the bargaining power of buyers is determined by the number of buyers, the importance of each individual buyer to your business, the cost to them of switching from your products and services to those of someone else, and the possibility of them backward integrating.
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