Volume is critical to suppliers

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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 Ikea. … "Volume is critical to suppliers" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it. This statements will have a short-term negative impact on this entity, which subtracts from its value. "Volume is critical to suppliers" 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

Bargaining Power of Suppliers: Volume is critical to suppliers
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 Ikea.

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