The bargaining power of suppliers is an important force to keep under control. It refer to the potential of the suppliers to increase the prices of inputs or the costs of industry in other ways. (MSG Management Study Guide, n.d.) The number of suppliers controls the amount of power that can be distributed. If there is only one supplier that exists, that supplier holds a lot of power over the company. The supplier is able to control prices and can charge as much as they like. With there being limited options of suppliers, a company will have no choice but to hand over a majority of the bargaining power to the suppliers. That is why it is important to keep up with the suppliers within the market.
Keeping a diverse group of suppliers is a great …show more content…
Keeping the consumer happy while doing right by your company is a difficult balance to maintain. Giving the consumer too much power is dangerous for a company. If given too much bargaining power, consumers could demand price decreases.
It is also important to let the consumer know that they are being taken care of. Staples, Inc. has recently made a promise to their customers. Staples wants to “make it easy to make more happen” The company is aware of how busy the consumers are. Therefore, they have introduced new ways to shop. These new ways include, online shopping, a Staples app, shopping at a store near the consumer, reserve items online and pick them up in store, hassle-free returns, and many others. (A New Promise to Our Customers, n.d.) This is an example of how Staples can balance the bargaining power of …show more content…
A Competitive profile matrix shows the clear picture to the firm about their strong points and weak points relative to their competitors. (CPM (Competitive Profile Matrix), 2011). A CPM takes a large amount of data about the competitors and puts it in one chart. This make it easy to see where everyone stands. CPM also takes the data and puts it into a single numeric score or each competitor. (Writer, L. G. 2013) There are a few benefits to using a CPM. One of them being that the companies are all evaluated on the same critical success factors. Therefore, making the comparison it more accurate. Another benefit is the way the data is shown. The chart makes it easy and quick to read. The final benefit is its influence on decision-making. Companies can see what factors they need to pay attention to factors where they are already succeeding. (Jurevicius, O. 2013) The CPM above showed some interesting but also expected results. Amazon had an even four as their score. The company competes with Staples on an online front. Looking at the financial statements Amazon and Staples have similar numbers. Office Depot’s score was a 2.3. This was the lowest score. Finally, Walmart finished with a score of 3.7. Making it the second highest
Keeping a diverse group of suppliers is a great …show more content…
Keeping the consumer happy while doing right by your company is a difficult balance to maintain. Giving the consumer too much power is dangerous for a company. If given too much bargaining power, consumers could demand price decreases.
It is also important to let the consumer know that they are being taken care of. Staples, Inc. has recently made a promise to their customers. Staples wants to “make it easy to make more happen” The company is aware of how busy the consumers are. Therefore, they have introduced new ways to shop. These new ways include, online shopping, a Staples app, shopping at a store near the consumer, reserve items online and pick them up in store, hassle-free returns, and many others. (A New Promise to Our Customers, n.d.) This is an example of how Staples can balance the bargaining power of …show more content…
A Competitive profile matrix shows the clear picture to the firm about their strong points and weak points relative to their competitors. (CPM (Competitive Profile Matrix), 2011). A CPM takes a large amount of data about the competitors and puts it in one chart. This make it easy to see where everyone stands. CPM also takes the data and puts it into a single numeric score or each competitor. (Writer, L. G. 2013) There are a few benefits to using a CPM. One of them being that the companies are all evaluated on the same critical success factors. Therefore, making the comparison it more accurate. Another benefit is the way the data is shown. The chart makes it easy and quick to read. The final benefit is its influence on decision-making. Companies can see what factors they need to pay attention to factors where they are already succeeding. (Jurevicius, O. 2013) The CPM above showed some interesting but also expected results. Amazon had an even four as their score. The company competes with Staples on an online front. Looking at the financial statements Amazon and Staples have similar numbers. Office Depot’s score was a 2.3. This was the lowest score. Finally, Walmart finished with a score of 3.7. Making it the second highest