Tstaros --
You don't have to look too far for good analyses of buyers' power in a
marketplace, largely thanks to the work of Michael Porter and
development of his "5 Forces" theory. The book itself contains
detailed examples of industry dominance:
Amazon.com
"Competitive Strategy: Creating and Sustaining Superior Performance"
http://www.amazon.com/exec/obidos/tg/detail/-/0684841460/ref=pd_sbs_b_2/103-5148680-6060644?v=glance&s=books
And there are excellent websites that break down the Porter 5 forces,
including the QuickMBA site, which provides several well-known
examples of "buyer power," including:
? major retailers in a category like Best Buy or Circuit City for electronics
? Sam's Club or Costco in the warehouse store category
? IBM in mainframe computers
? the Big 3 auto makers
? concentrated ownership of department stores (with clothing
manufacturers as suppliers)
QuickMBA
"Porter's Five Forces" (undated)
http://www.quickmba.com/strategy/porter.shtml
The same website offers some strategic implications and alternatives
when buyers have power in a situation:
"Porter's Generic Strategies"
http://www.quickmba.com/strategy/generic.shtml
Note that the dominance of markets by buyers, termed a 'monopsony' by
economists, makes a Google search using the term very relevant. And
recent B2B efforts in both the auto and travel industries to set up
collaborative efforts on the web by competitors have made it a
relevant issue for the Federal Trade Commission. Examples of good
searches include:
monopsony + buyers + suppliers
monopsony + IBM + suppliers
---
Once you've got the concentrated industry that you're seeking, one of
the best strategies is to look at what's being written about the
industry. A good start is Google Answers, which can be searched
exclusively from the home page. For information about Wal-Mart and
Costco activities vis à vis suppliers, I might suggest these. The
first one doesn't have a very descriptive title but deals with the
business model of Costco, the warehouse retailer:
Google Answers
"Example by Omnivorous" (Omnivorous, Dec. 25, 2003)
http://answers.google.com/answers/threadview?id=290394
"Wal-Mart" (Jeanwil, April 1, 2003)
http://answers.google.com/answers/threadview?id=184079
"Wal-Mart History" (Juggler, Mar. 10, 2003)
http://answers.google.com/answers/threadview?id=174472
"EDI Between Wal-Mart and It's Suppliers" (Eiffel, Sept. 19, 2002)
http://answers.google.com/answers/threadview?id=66962
"Profession Selling" (Omnivorous, Oct. 11, 2002)
http://answers.google.com/answers/threadview?id=74775
---
For large industries, often there are books that talk about supplier
relationships and industry consolidation. Though it's a bit dated
now, having been written by David Halberstam in 1986 before the full
impact of globalization hit the auto industry, his book "The
Reckoning" talks about how suppliers were effected as the Big 3 auto
suppliers consolidated during the first half of the 20th Century. The
book is even more interesting because he also notes the impact of
Japanese market consolidation on suppliers, who exist in a tighter
business combination, termed a "keiretsu."
Amazon.com
"The Reckoning" (Halberstam, 1986)
http://www.amazon.com/exec/obidos/tg/detail/-/0688048382/qid=1083170463/sr=1-5/ref=sr_1_5/103-5148680-6060644?v=glance&s=books#product-details
Google search strategy:
Porter + "five forces" + suppliers
Porter + monopsony + buyers
Keiretsu + suppliers
"doing business with Microsoft"
Best regards,
Omnivorous-GA |
