Volume is critical to suppliers (Kellogg's)

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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 Kellogg's. … "Volume is critical to suppliers (Kellogg's)" has a significant impact, so an analyst should put more weight into it. "Volume is critical to suppliers (Kellogg's)" will have a long-term negative impact on this entity, which subtracts from the entity's value. This qualitative factor will lead to an increase in costs. "Volume is critical to suppliers (Kellogg's)" is a difficult qualitative factor to overcome, so the investment will have to spend a lot of time trying to overcome this issue.

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