ABSTRACT
The strength of the suppliers is determined by the number of suppliers on the market and the negotiating position these suppliers have. If there are many suppliers and thus little negotiating strength, the prices of raw materials, semi-manufactures and materials are low. If there are few suppliers with a strong negotiating position, then the prices for raw materials, semi-manufactures and materials will be high. If the negotiating strength of the suppliers and customers is high, then the sector is already less attractive. The suppliers and customers are the most important players in the market. If there is great rivalry between the providers on the market moreover, then the chances of successful entry are considerably lower. Companies already operating in the market have less competition and are able to achieve higher margins.
