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.

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