Essay: Power of Suppliers for Toyota

Essay: Power of Suppliers for Toyota

Sample Essay

The availability of significantly less number of suppliers of some item and the unavailability of any substitutes for it can be seen to reflect the power of the supplier in a particular market. This is especially important when analyzing the automobile industry as it is characterized by the need for certain core raw materials such as steel, rubber and fuel.

The alternatives are in most cases very costly. In such circumstances, the supplier can be seen to be in a position to dictate terms. However, if the supplier comes in a position where there is a dependency on the automobile manufacturer, then that brings a little danger if the manufacturer shifts preferences.

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