Volume is critical to suppliers (LEGO)

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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 LEGO. … "Volume is critical to suppliers (LEGO)" will have a long-term positive impact on the this entity, which adds to its value. "Volume is critical to suppliers (LEGO)" 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.

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 (LEGO)
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 LEGO.

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