Bargaining Power of Suppliers (Weak)

The bargaining power of suppliers has weak intensity in the retail industry market
environment. As there are many suppliers in the industry, large retail firms like
Future group retail, can easily affect the bargaining power of these suppliers. Based
on this condition, Future Group Retail experiences the weak force of the bargaining
power of suppliers, based on the following factors:

 Large proportion of suppliers (weak force)

This essentially means that there no control of one supplier over the other, for each
product category there are multiple suppliers and hence due to cut throat
competition, one firm tries to be better than the other and in the process collective
power of the suppliers reduces.

 Tough competition among suppliers (weak force)

 High availability of supply (weak force)
 Risk of Private Labels in future(weak force)
 High Brand value of certain products(moderate)

If certain products are very high in terms of brand strength, like Colgate is to
toothpaste, so these brads have a relatively moderate strength as unavailability of
such products may induce switching behaviour .

This analysis of Future Retail considers the large population of suppliers as having
weak potential to impact the company. Individual suppliers have minimal influence
on large retailers like Future group ltd. In addition to this, there are many suppliers
competing for limited space in retail stores in specific product categories. The high
availability of supply makes it difficult for suppliers to impact the strategic growth of
Future retail, in fact they run a risk that the private labels may pose in future. Thus,
the company faces the weak intensity of the bargaining power of suppliers.