Bargaining Power of Starbucks Coffee’s Suppliers (Weak Force)
Starbucks Coffee faces the weak force or bargaining power of suppliers. In the Five Forces analysis model, this force refers to the influence that suppliers have. In Starbucks Coffee’s case, the following external factors contribute to the weak force or bargaining power of suppliers:
• High variety of suppliers (weak force)
• Large overall supply (weak force)
• Moderate size of individual suppliers (moderate force)
This part of the Five Forces analysis model shows that suppliers do not have much impact on Starbucks. The large overall supply lessens the effect of any single supplier on the company. Also, Starbucks has a policy for diversifying its supply chain. This policy reduces the influence of suppliers on the business even though each supplier has a moderate size compared to the Starbucks supply chain. Thus, based on this aspect of the Five Forces analysis model, Starbucks Coffee does not need to prioritize the concerns or demands of suppliers.