Topic > Amazon's Cost Leadership Strategy - 1414

Supplier power is medium to high. Amazon has access to multiple goods and products from different companies and businesses around the world. Suppliers have medium power because much of Amazon's inventory can be obtained through other suppliers. Suppliers have even more power because Amazon cannot compete with its suppliers. Therefore, Amazon is highly dependent on its suppliers for products and profits. Amazon certainly has its disadvantages in this respect, but it also has advantages in the sense that Amazon can control many of its small suppliers. Amazon minimizes inventory for small businesses to reduce costs. On top of that, businesses don't charge Amazon until the product is sold, and Amazon pays businesses 35 days after the product sells.