Imagine you run a higher-end, fast food chain that emphasizes freshness. You rely on various suppliers for everything from paper goods to food products. These same producers sell to other fast food chains and markets. For some items, such as paper goods and dry goods, you have several supplier options. For other items, such as ketchup and soda, getting the name brand matters to your customers. For still others, such as organic produce and meats, you rely on a few select suppliers. What might an analysis of the power of suppliers reveal?

The power of your suppliers is relatively high in some key areas and relatively low in others. You might wish to explore alternatives for your organic produce and meats to ensure a more diverse supply.

The power of your suppliers is relatively low overall, since you work with a diversity of vendors and can pick among them based on a balance of price and quality. Since organic produce and meats are a part of your brand, you need to stick with those suppliers.

The power of your suppliers is relatively high overall, since there are so many of them. You need to consolidate to one vendor who can supply all your needs, since that will enhance your bargaining position.