Analysis of market power by suppliers

Suppliers of raw materials, components, labor and services may affect the activities of dentists. They may refuse to work with a company or set excessively high prices for unique resources. The product is an important supplier of inputs in the business buyer. This resource can determine the efficiency of the production process or the quality of the products for the buyer, which increases the power supplier.

Suppliers are able to show the market power of the parties to increase the industry's threat to reduce prices or quality of goods and services. Thus, the suppliers may have the power to extort profits from the industry, which will be unable to compensate for the rise in prices increase their own prices.

This is an important link in the creation and distribution of customer value. Suppliers competitors can exert competitive pressure if they can provide individual players in this market more favorable conditions in terms of price, quality and consumer properties of equipment, professional cosmetics, supplies or delivery dates. Any little thing can affect the operation of the kindergarten. Supplier selection criteria for reliability - be sure to ask those who cooperated with him, there are no supply disruptions, and how clean his reputation. Thus, we can conclude that the levers exert pressure on the providers of dental services.

Suppliers and dental services are companies providing equipment, spare parts and consumables for the job. Market vendors - saturated. There is a choice of supplier. Particular attention should be paid to the landlord. In the case of repair and kindergarten promotion tied to the production facilities, may increase the rent.

Bargaining power of suppliers - moderate.

Analysis of market power consumers

Consumers are not tied to a particular company, and are sensitive to price changes.

Every consumer is especially valuable for dentists, as we understand the superiority of some competitors in the range of services in their quality. The prospect of the loss of customers, especially the permanent may prompt to make additional concessions. Great influence has informed customers of the dental services and our competitors. The better informed consumers are, the better their position in relation to suppliers.

Thus, we can conclude that leverage customers put pressure on the competitiveness of our dental office. The bargaining power of customers - strong.

Дата добавления: 2015-11-16