The presence of powerful suppliers reduces the profit potential in an industry. Suppliers increase competition within an industry by threatening to raise prices or reduce the quality of goods and services. As a result, they reduce profitability in an industry where companies cannot recover cost increases in their own prices. A supplier group is powerful when it is dominated by a small number of companies and is more concentrated than the industry to which it sells. One important supplier for the industry is the web pageās creators, as there are many, their bargaining power it is not significant. Other supplier is the secure online payment, its bargaining power its high because thereās only a few companies that provide this service.
Bargaining Power Of Consumers