Volume is critical to suppliers (Best Buy)

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When suppliers are reliant on high volumes, they have less bargaining power, because a producer can threaten to cut volumes and hurt the supplier’s profits. This can positively affect Best Buy. … "Volume is critical to suppliers (Best Buy)" has a significant impact, so an analyst should put more weight into it. "Volume is critical to suppliers (Best Buy)" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it.

Five Forces Analysis Survey This statement has a significant impact? Has a positive impact over the long term? Has a negative impact over the long term? Has a positive impact over the short term? Has a negative impact over the short term? This statement leads to reduced costs? This statement leads to increased costs? This statement leads to increased profits? This statement leads to decreased profits? Easy to defend this advantage? Easy to overcome this disadvantage? Difficult to defend advantage? Difficult to overcome this disadvantage? Affected Investments

Bargaining Power of Suppliers: Volume is critical to suppliers (Best Buy)
When suppliers are reliant on high volumes, they have less bargaining power, because a producer can threaten to cut volumes and hurt the supplier’s profits. This can positively affect Best Buy.

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