The Power Of Suppliers | nursing homework essays

Complete a one paragraph write-up for each of the 5 Forces by stating the strengths, the other members or parties, and your analysis of each force from your entity’s perspective.
( here 5 Forces)

1. The threat of entry in an industry depends on the height of entry barriers that are present and on the reaction entrants can expect from incumbents. If entry barriers are low and new- comers expect little retaliation from the en- trenched competitors, the threat of entry is high and industry profitability is moderated
2. The Power Of Suppliers.Powerful suppliers capture more of the value for themselves by charging higher prices, limiting quality or ser- vices, or shifting costs to industry participants.
3. The power of buyers. Powerful customers— the flip side of powerful suppliers—can cap- ture more value by forcing down prices, de- manding better quality or more service (thereby driving up costs), and generally playing industry participants off against one another, all at the ex- pense of industry profitability. Buyers are power- ful if they have negotiating leverage relative to industry participants, especially if they are price sensitive, using their clout primarily to pressure price reductions.

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