Phase 2: Market Analysis
Next the company weights the bargaining power of its suppliers against its own strength as a customer (see Exhibit III). It systematically reviews the supply market, assessing the availability of strategic materials in terms of both quality and quantity, and the relative strength of existing vendors. The company then analyzes its own needs and supply lines to gauge its ability to get the kind of supply terms it wants. Of the contrasting criteria of supplier and company strength listed in Exhibit III, some are self explanatory. But six call for special comment.