Competitive analysis—Its role in purchasing

In all cases a company's perception of its strengths/ weaknesses reflects that of its view of its relative power position vis-à-vis the other parties in the system. Tecognition of power/weakness can be a stimulant to redressing the balance in the company's favour. This paper seeks to emphasize the potential for such action in supply markets, for supply markets are sources of considerable potential worthy of careful attention from corporate strategists. The paper illustrates in outline one approach to competitive analysis in supply markets. The approach is not intended to have universal application. However, it should suggest a framework which can be tailored to most situations where input costs are a significant element in output revenue.