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Purchasing power
Purchasing power is when a firm can use leverage to negiotiate for a service or good at a price lower than a smaller entity may be able to do so. For instance, small manufacturers may depend on Wal-Mart Stores (WMT) for a good portion of revenues. Wal-Mart could threaten to remove the supplier from its shelves if the company does not lower the price it charges Wal-Mart. |
The Shelf
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