Sample Essay

There are over 2000 suppliers for M&S products on a global level as mentioned earlier in this report. The bargaining power of suppliers is therefore not a huge company such as M&S who are the ones who dictate the terms to the suppliers. Plus, the fact that the growth in the Italian economy has come to a halt in the last few years, it is our belief that the government will support the move that a foreign concern enters the market and provides much needed foreign investment to bolster a weak and staggering economy.

For this to happen, the government might put pressure on domestic suppliers to provide matching rates to the foreign retailer that the suppliers provide to the domestic retailers. This view point holds for all the markets, that is clothing, household items and gifts. For the gift market, the following quote from the CBI Market Survey is sufficient to explain the nature of supplier bargaining power:

“Italy’s gifts and decorative articles are distributed through five major channels: importers/distributors, commission agents/sales representatives, department stores, mail-order and Internet sales. Because Italy has a large number of handicraft manufacturers, department stores prefer to deal directly with manufacturers to save costs” (CBI Market Survey, 2003).

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