Policy and Strategy Comparing Powerful Term Paper

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Suppliers also exert significant influence in terms of their ability to demand higher prices in scarcity, and can use product quality as a differentiator. From the standpoint of a company relying on suppliers, the use of quality management audits (LaLonde, Raddatz, 2002) can be an equalizing force in the balance of power in a relationship with a supplier.

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Given the fact that buyers have significantly greater influence on the continual income stream of a company and the potential of replacing a supplier or discontinuing an unprofitable product, loss of profits from a supplier would be more recoverable from relative to that of a powerful buyer......

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