Volume is critical to suppliers (General Motors)

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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 General Motors. … "Volume is critical to suppliers (General Motors)" has a significant impact, so an analyst should put more weight into it. This qualitative factor will lead to a decrease in costs. "Volume is critical to suppliers (General Motors)" is a difficult qualitative factor to defend, so competing institutions will have an easy time overcoming it. "Volume is critical to suppliers (General Motors)" will have a long-term negative impact on this entity, which subtracts from the entity's value.

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 (General Motors)
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 General Motors.

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