Volume is critical to suppliers (Sara Lee)

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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 Sara Lee. … "Volume is critical to suppliers (Sara Lee)" 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 (Sara Lee)" is a difficult qualitative factor to overcome, so the investment will have to spend a lot of 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? 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 (Sara Lee)
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 Sara Lee.

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