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Suppliers

Suppliers are those who supply the organisation with what it needs to produce the product or service. As well as fuel, raw materials and equipment, this can include labour and sources of finance. The factors increasing suppliers power are the converse to those for buyer power. Thus, supplier power can be high in certain areas.

Concentrated suppliers

Where just a few pruducers dominate supply, suppliers have more power over buyers. The iron ore industry is now concedtrated in the hands of three main producers, leaving the steal companies, relatively fragmented, in a very weak negotiation position for this essential raw material. read more about the power of suppliers here