A Study on Ecommerce : Gmarket

All their suppliers range from small farming cooperatives to multinational corporations . They consider factors such as capacity, quality and cost when selecting companies to buy from. In addition, seek only to work with suppliers that can consistently meet standards and specifications and

Supplier Power. With a vast variety of products available to Lowe’s, the supplier power is low. Lowe’s can choose from different vendors the products mix that differ from their competition. In addition, entering contractual agreements with vendors helps in lowering this risk.

​A Porter analysis will be performed throughout this paper, on the internet sales industry. Included in the Porter analysis is six relative competitive forces; threat of new entrants, rivalry amongst firms, threat of substitute services, bargaining power of buyers, bargaining power of suppliers, and relative power of other stakeholders.

For restaurant retailers, the power of suppliers is high. This can be indicated by lack of substitute produces and low importance of restaurants as buyers.

Bargaining Power of Suppliers: The bargaining power of suppliers in the industry is low. There are numerous suppliers in this industry, and the large department stores have the ability to negotiate for the lowest prices. In addition, the switching costs are low, as the products are not highly differentiated. There are a large volume of purchases in the industry, allowing the department stores to exert even more power over the suppliers.

For the industry, suppliers have a moderate level of power, as they are able to switch distribution channels quite easily; such as Country Road's change to Myer after 30 years with David Jones. Suppliers can also become self sufficient by selling online. For David Jones' sector, supplier power becomes lower. Suppliers battle with each other for exclusive placements in high end stores, and stores such as

Power of Suppliers - This is how much pressure suppliers can place on a business. If one supplier has a large enough impact to affect a company's margins and volumes, then it holds substantial power. Here are a few reasons that suppliers might have power:

The power of suppliers is low due to the fact that Trader Joe’s deals with a multitude of suppliers worldwide, thereby decreasing the leverage of an individual supplier. Also, Trader Joe’s has much more control over their suppliers due to the smaller size of their stores and the number of SKUs that they stock. Most of the products sold at their store also carry their own brand name, which means that they could switch suppliers and the customer would never know the difference. Also, Trader Joe’s has all of their suppliers sign secrecy forms so neither shopper nor competitors know who is making their products.

Bargaining Power of Suppliers: A producing industry requires raw materials - labour, components, and other supplies. This requirement leads to buyer-supplier relationships between the industry and the firms that provide it the raw materials used to create products. Suppliers, if powerful, can exert an influence on the producing industry, such as selling raw materials at a high price to capture some of the industry's profits. Tesco maintains direct professional business relationships with all their suppliers of organic food and non-food product worldwide. They also conduct supplier viewpoint surveys to find out what their suppliers think of Tesco.

Suppliers have less power because there are a lot of suppliers and they all willing to accommodate and provide discounts for their customers (economies of scale).

Bargaining power of suppliers – Being a big player in industries that are dominated by smaller players also ensures that suppliers don’t have much bargaining power.

Porter (1980) emphasized that suppliers to an industry may be powerful if they are more concentrated than their customers and their customers do not command a significant share of their business because their customers do not represent a potential long-term or major relationship, for example, one-off or small customers versus regular or bulk buyers.

Supplier Power: This highlights that it is easy for suppliers to rise up their prices. This is determined by the number of suppliers, the uniqueness of their product, their control over the buyer, and the cost of changing from one buyer to another. The scarcer the supplier choices you might have, and the more you need the help and that

The bargaining power of buyers stands in a direct relationship with the bargaining power of suppliers. If the bargaining power of buyers is substantial it increases the opportunity cost of suppliers. The greater the buyers concentration the greater their bargaining power. This bargaining power is also increased in markets where the suppliers’ concentration is high. The bargaining power is also increased when the cost of switching from one supplier to another is low. In instances where backward vertical integration is possible i.e. buyers setting up their own chains of suppliers the bargaining power of the buyer increases in that their prices may become more competitive. In a market where the buyers are more concerned over quality than price their bargaining power decreases as they are less inclined to shop

The power of buyers is high because this company depends of the businesses and consumers’ demand. This is because they can decide where to buy