BARGAINING POWER OF BUYERS AND ITS IMPACTS ON A TEXTIL FIRM IN THE VALE DOS SINOS REGION (RS): THE CASE OF A SUPPLIER OF THE FOOTWEAR CLUSTER
Published date: 19/07/2016
The structure of a sector is one of the factors that currently determines the profitability of a company. The com-pany Alpha, studied in this research, is a supplier of fabrics for the footwear manufacturing cluster. The objective of this study is to evaluate the bargaining power of the main buyers this company, based on Porter's taxonomy (2004), and the effects on the profitability and the positioning of this company. A case study was carried out, using document research on sector studies, the accounting records of the company, and interviews with the managers of Alpha and with their main buyers. The contribution of the study is that it details the complicating factors in relation to the buying power for this business, and that need to be managed. It concludes that the buy-ing sector tends to exert low bargaining power over the company, based on the study of elements of the sector, and interviews with managers and buyers of Alpha. It was also found that the positioning of Alpha is coherent with the conditions of the sector, with differentiation is the best strategic option, as it enables higher profit mar-tins, corroborating empirical evidence from other studies on the footwear cluster in the state of Rio Grande do Sul.