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Under Porters Five Forces, what does the power of suppliers mean?

This force addresses how easily suppliers can increase the cost of inputs. This will be affected by the number of suppliers of key inputs of goods or services, and how unique these inputs are as well as how much it would cost the company to change suppliers. Generally, the fewer the number of suppliers and industry, the more companies will depend on one specific supplier.

Therefore, suppliers with more power will have the ability to dictate the price of input costs. Conversely, the fewer the number of suppliers the lower price of input costs which will ultimately benefit the firm.

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