Powerful suppliers capture more of the value for themselves by charging higher prices, limiting quality or services, or shifting costs to industry participants. In a highly competitive environment, power of suppliers takes into account the ability for companies to source within the market. It is indeed for denim companies to ensure the availability of raw materials needed to manufacture their products. However, Jeans companies have no power on raw materials cost and if there is a rise of cotton cost, it will have repercussions on jeans prices.