Suppliers Business firms must also deal with the suppliers of various resources, including materials and equipment. labor. and financing. vendors or Materials and Equipment Powerful material and equipment suppliers can squeeze profits by raising prices. reducing the quality of products. or reducing the level of services. The conditions that make a supplier group powerful are similar to those that make buyers powerful. which include few suppliers. no substitutes. and suppliers who offer dif- ferentiated products. For example. Nutra-sweet. a division of Monsanto Company. now holds the patent for aspartame and is in a very strong position until its patent expires in 1991. lf the of these conditions presence fosters powerful suppliers. the buying firm can seek to improve its position by influencing one or more of the above conditions. It might threaten to integrate vertically by buying its own supplier, or perhaps obtain an exclusive license. Selection of supplers should be based on vendor analysis. Each potential supplier should be analyzed on those factors considered important to the individual firm. Records of vendors' past performance are also valuable''Ibid. P. 27