Volume is critical to suppliers (Lululemon Athletica)
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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 Lululemon Athletica. … "Volume is critical to suppliers (Lululemon Athletica)" has a significant impact, so an analyst should put more weight into it. "Volume is critical to suppliers (Lululemon Athletica)" will have a long-term positive impact on the this entity, which adds to its value. This statements will have a short-term negative impact on this entity, which subtracts from its value. This qualitative factor will lead to an increase in costs. |
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Bargaining Power of Suppliers: Volume is critical to suppliers (Lululemon Athletica)
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 Lululemon Athletica.
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