Q Identify an industry in which the suppliers have strong bargaining power and another industry in which the buyers have most of the bargaining power. How does this affect potential profitability in the industries?
In fast-food industries, suppliers have strong bargaining powers. They have to depend on their suppliers for food products, packaging, napkins and restroom essentials. Suppliers have many buyers in a particular area and therefore, has a leverage in the contract negotiations with a particular restaurant. Before entering this industry, individuals should think about the bargaining that the suppliers are going to put up. If the suppliers have huge influence on the market then the income projections need to be adjusted ("Fast Food Industry: The Bargaining Power of Suppliers", 2020).
