1. Intro – Buyers & Suppliers
How to write!
It is a business paper, not an English paper.
Notice that in the sample paper there are conclusions for each sub-section.
Each sub-section will have the theory being tested, the observation being made – with support, and your conclusion.
Example of sub-section conclusion: “We find that the suppliers are more concentrated than our industry. This gives suppliers power and makes the industry unattractive”

2. Buyers & Suppliers Objective: Determine who has power.
Provide a decision matrix for each section.

3. Suppliers
Suppliers:
What do we buy? Think product groups, not nuts and bolts. List the groups.
Eliminate commodity items.
Focus only on critical items where suppliers likely have power.
Maintain focus! You are the industry looking back at the suppliers.

4. Suppliers
Concentration: Are there more of them than there are of us? The smaller number will be the more concentrated and will have power. Same is true with buyers.

5. Suppliers Access to capital:
Past industry performance is an indicator of future performance. Determine the average industry profitability over the last 5 years. Compare to the inflation rate for the same period. Now, would bankers loan us money – in future – at a favorable rate?

6. Suppliers Access to Labor:
What kind of labor do we need? Skilled? Unskilled?
If there are unions, this could limit access to labor. What is the recent hiring trends?
What do recent economic trends tell us about possible access to labor?
No voice file for this overhead.

7. Buyers Buyers What is/are the channel(s) of distribution?
To whom do we sell?
Arrange an interview with a buyer!!!!!!
Know what you are talking about.
Maintain focus!
(This section is pretty much the reverse of the supplier section)