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Impact on Existing Firms in the Industry Negative Positive
Table 4: Bargaining Power of Suppliers
Number of suppliers (check share of top four suppliers) Small Large
Availability of close substitute products for the industry Few Many
Switching cost for industry player to switch to other suppliers High Low
Supplier’s threat of forward integration into industry High Low
Industry’s threat of backward integration into industry Low High
Contribution to quality of industry’s final product High Low
Contribution to cost of industry’s final product High Low
Industry’s importance to supplier Low High