Bargaining Power of Suppliers to the Industry The greater the leverage that
suppliers of key raw materials or components have, the less attractive is the industry. For
instance, because they supply the chips that serve as the “brains” of PCs and because those
chips make up a sizeable portion of the cost of a computer, chip makers such as Intel and
Advanced Micro Devices (AMD) exert a great deal of power over computer manufacturers
such as Dell, Hewlett-Packard, and Gateway. Generally, an industry is more attractive