Bargaining Power of Burger King’s Suppliers (Weak Force)
Suppliers affect the quick service restaurant industry environment through variables like pricing and supply control. The impact of suppliers on firms like Burger King is considered in this aspect of the Five Forces analysis. The following are the major external factors that create the weak bargaining power of Burger King’s suppliers:
High number of suppliers (weak force)
High overall supply (weak force)
Low forward integration (weak force)
There are many suppliers that compete to provide their products to firms like Burger King. In relation, there is an abundance of supply of raw materials and ingredients. These conditions limit the influence of suppliers on Burger King and other fast food restaurant firms. Also, most suppliers in this industry have low forward integration, which corresponds to their degree of control on the distribution and sale of their products to companies like Burger King. Based on this aspect of the Five Forces analysis, suppliers’ bargaining power is the least of Burger King’s concerns.