Competitive Analysis six ways to mitigate the power of suppliers and bias

Porter’s five forces model

  • Threat of entry
  • Bargaining power of suppliers
  • Bargaining power of bias
  • Intensity of rivalry
  • Threat of substitution

Take advantage

Your options

  • Stop selling your product to them
  • Raise your prices
  • Reduce your quality
  • Put less product in each batch
  • Reduce the size of your product

Their options

  • Stop buying your product
  • Insist you lower your prices
  • Demand higher quality
  • Expect more product for the same price

1. Large portion of suppliers sales

2. Large portion of bias budget

3. Undifferentiated purchases

4. Low switching costs

5. Threat of backward integration

6. Unimportant for bias quality

Reverse to mitigate

  • A small portion of suppliers sales
  • A small portion of bias budget
  • Differentiated purchases
  • High switching costs.
  • Low threat of backward integration.
  • Important for bias quality.

Supermarket example

Competitive Analysis six ways to mitigate the power of suppliers and bias

About Octopus Intelligence

  • Competitive Strategy
  • Competitive Intelligence
  • Corporate Investigations

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