Bargaining Power of Suppliers

Topics: TFT LCD, Liquid crystal display, Thin-film transistor Pages: 2 (583 words) Published: December 5, 2008
4.0 Bargaining Power of Suppliers

4.1 Degree of Supplier Concentration
The Australia LCD screen TV business is currently dominated by a lot of electronic manufacturers. They are Acer, LG, Sony, Samsung and many others different company (PC Authority 2007). Products from these manufacturers can be found selling in companies like, Dick Smith Electronic, Myer, David Jones, Harvey Norman and others electronic retailers. The bargaining power of a supplier is the ability to influence the setting of prices. The more control it has on the supply means it has more power in the market. The area or location of the companies also plays an important role in the bargaining power. If the companies are all situated at the same or nearby location, they can work together to decrease the customers bargaining power. For example, Dick Smith Electronic, Myer, and David Jones are all situated at both Perth City and Garden City. Therefore, they can decrease the customer bargaining power to increase their bargaining power by cooperating with each other.

4.2 Availability of Substitute Inputs
LCD TV produces colour using active-matrix technology. An active-matrix display, also known as thin-film transistor (TFT) display has recently been replaced by using a newer type of TFT technology, which is the organic LED (OLED). It uses organic molecules that product a brighter and clearer display comparing to the standard TFT displays. Other than that, OLEDs are also cheaper to product, while consuming less power (Shelly, Cashman and Vermaat 2008, 304).

4.3 Analysis
The bargaining power of suppliers is relatively high as most of them are all located at the same or nearby location. Therefore, SEC Ltd should take this opportunity to enter the Australia market by cooperating with other suppliers in order to run their business successfully.

7.0 Hofstede’s Cultural Dimensions

7.1 Cultural Dimensions of Australia and Korea
Australia is a country that with culture that emphasise...
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