Management Reprot Essay Example | Topics and Well Written Essays - 1500 words - 1

Management Reprot - Essay Example However, there are some factors that limit threats from new entrants. Some of these factors include consumer loyalty, initial capital requirements, scarcity of the available resources and many others. This refers to the influence that suppliers have on a business. If a single supplier can have eminent influence to affect a firm’s margins and volumes, then the supplier bears significant power and the vice versa. Some reasons why a supply can have power include; lack of close substitutes, limited suppliers in the market, the value of the product to buyers among other reasons. This refers to the influence of consumers to a firm. If one consumer possesses sufficient power to alter the margins of a company, they hold a commanding power. Some of the reasons why consumers might have power includes; availability of information to buyers, limited buyers in the market and the amount purchased among others. Availability of close substitutes is a real challenge to a firm. Some of the factors that affect the threat of substitutes include; buyer preference to substitutes, switching costs, technological changes and many