The paper "Importance of the Buyer-Supplier Power in Management and Outcomes of the Buyer-Supplier Exchanges" is an outstanding example of marketing coursework. The two most important players in the business world are the buyers and suppliers. In the study of value chains, any firm may become a supplier or a buyer. On both sides of view, the power relations to each side seeks to determine the price. In the determination of price, one important aspect for any scholar in the value chains and procurement studies should understand is the issue of surplus-value.
By definition, surplus value is the difference between the cost of production of the supplier and the value placed on the product by the buyer. Roughly, power in the buyer-supplier relationship is the ability of one party to influence the other party to do something they would not have done originally (Morsy and Ibrahim). For a price to be determined, buyer-supplier power plays an important role in the division of the surplus-value. An analysis of the buyer-supplier power and the influence it has on the buyer-supplier exchanges is important because the determination of an agreeable price is important for both parties. In understanding the buyer-supplier power, a detailed analysis of three factors that affect this buyer-supplier power is needed.
These factors are scarcity, utility, and information (Lonsdale, 2004). These three factors play an important role in defining the buyer-supplier exchanges. These factors can be interpreted as resources to be exploited by both buyers and suppliers. It is of practical importance, therefore, to analyze the impact of these resources on buyer-supplier power and the end impacts on the buyer-supplier exchanges. Distribution Of The Buyer-Supplier Power In the power plays, each player in the market seeks to obtain the largest portion of the surplus-value.
The conditions of the markets are dynamic with a characteristic of changing over time. These constant changes in the market are due to the changes in the supply market and other factors such as shifts in technological employment and the economic environment. Taking into consideration these factors, there may exist different power layouts in the market (Campbell and Cunningham, 1983). These layouts include supplier dominance, buyer dominance, interdependence, and independence (Chicksand et al.
2014). The different power-sharing scenarios are, therefore, a significant area for academics in the field of market studies. \
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