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Bargaining Power of Suppliers in the Restaurant Industry

Written by matthew | Dec 19, 2013 9:04:38 AM

The bargaining power of suppliers creates persistent difficulties for restaurants. The term Porter analysis refers to company business plans and their attempt to gauge the forces that affect a company’s chances for success. The five forces include threats from new products and services, competition from established rivals, threats of new companies entering the market, bargaining power of buyers and bargaining power of suppliers. Restaurants must deal with these forces in business planning or face limited business success or eventual failure.