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Sir am little confused when trying to apply porter’s 5 forces. In the first 2 aspects which talk about “Bargaining power of customers” and “Bargaining power of suppliers”, who is this “customer” and “supplier”??
The company say, NESTA is a supplier for its customers. But NESTA itself will have its suppliers, of whom NESTA is a customer.
So I am little befuddled in this regard. Can you please help?
1.
bargaining power of NESTA’s customers
bargaining power of NESTA itself as a supplier2.
bargaining power of NESTA’s supplier
bargaining power of NESTA itself as a customerWhich relationship Is porter referring to?
The company you are analysing has suppliers and customers. It sells to customers and buys from suppliers. Keep the company you are analysing central jn the analysis
Nesta is sells to it customers. Don’t shift things by saying Nesta is a supplier: it is a seller.
Nesta buys from its suppliers. Don’t shift things by saying Nesta is a customer.
When you are looking at the bargaining power of customers, this is the power of the people Nesta sells to. When you are looking at the bargaining power of suppliers, this is the power of the people Nesta buys from.
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