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Supplies – Five Forces

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Supplies – Five Forces

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Ken Garrett.
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  • May 5, 2017 at 6:48 pm #384984
    syfar42
    Member
    • Topics: 61
    • Replies: 22
    • ☆☆

    Can I consider labour as a supplier too in the Five Forces model? Even if they are not outsourced and they are actually our own employees?

    Because I am thinking that if a large number of employees of the company are part of a labour or trade union, then the company cant exploit them much as any bad changes in the working environment will have adverse impact on the company’s operations

    So in that way, bargaining power of the supplier (i.e- labour force) will be high if they are part of a trade union

    So can labour be considered a supplier in the five forces model?

    May 6, 2017 at 7:50 am #385036
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10649
    • ☆☆☆☆☆

    Yes, it could be. The shortage of soilled employees certainly affects competitive position.

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