Volume is critical to suppliers (Caterpillar)

Home Five Forces Analysis Index Caterpillar - Five Forces Analysis Volume is critical to suppliers (Caterpillar)

Last Updated by Anonymous | Update This Page Flag this page Delete This Page

Add New Five Forces Analysis | Feedback

rating: +1+–x

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 Caterpillar. … "Volume is critical to suppliers (Caterpillar)" has a significant impact, so an analyst should put more weight into it. "Volume is critical to suppliers (Caterpillar)" will have a long-term positive impact on the this entity, which adds to its value. This statements will have a short-term positive impact on this entity, which adds to its value. "Volume is critical to suppliers (Caterpillar)" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it. This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits. "Volume is critical to suppliers (Caterpillar)" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.
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?

Easily to overcome this disadvantage?

Difficult to defend advantage?

Difficult to overcome this disadvantage?

Affected Investments