Professional Documents
Culture Documents
Session 8
Session 8
Roles Purchases
• Gatekeeper • Rebuy
• Influencer • Modified Rebuy
• Decision maker • Technical purchase
• User • QUASI RESOLUTION
– Org related
– Personal related
Selling quality
Gatekeeper
Gatekeeper
Influencer
Influencer
Decision
maker Decision
maker
User
User
Intra Industry
Suppliers Competition Buyers
Bargaining power Market structure Bargaining power
Market Conduct
Market performance
Threat of
Substitutes
Entry barriers
Entry barriers
Entry barriers
Build marketing
Build production Related entry barriers
Related entry barriers High
Intra Industry
Suppliers Competition Buyers
Bargaining power (Change Bargaining power
Market conduct)
Low Low Low
Threat of
Substitutes
Low
Marketing
Building quality
First option
Second option
Gatekeeper
Influencer Influence
Influence Decision Buyers
OEM maker
R&D
Missionary
User
selling
Procurement Model
Low Dependence High Dependence of
of the buyer on the buyer on the
the seller seller
Low Dependence
of the seller on
the buyer
High Dependence
of the seller on
the buyer
Low Dependence High Dependence
of the buyer on of the buyer on
the seller the seller
Low
Dependence
of the seller
on the buyer
High
Dependence
of the seller
on the buyer
• Reduce Suppliers side bargaining power by
increasing production based entry barriers.
*Cost of prod *Better Technology
• Reduce Buyers side bargaining power by
increasing marketing based entry barriers.
*Distribution *Service *Brand
Increase Production based entry barriers by
Dependence matrix
Dependence of Dependence of buyer on supplier
supplier (inputs) on Low High
buyer
High
Several Suppliers and Few Interdependence
buyers
Eg: Jatropa Eg: Refinery
Low
Multiple buyers and Several Buyers/ Specialized
suppliers component
Eg: Steel Eg: Intel
Short term: Cost based Strategies
Dependence of Dependence of buyer on supplier
supplier on buyer Low High
High Low Inventory Assured Supply
JIT Contract
Low Price from Suppliers
High Credit terms
Low High Inventory Reduce cost