Page 34 - Flip Banks TG
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Bargaining Power of Suppliers
Generally, banks don’t really offer physical products which
need to be supplied. However, Barclays does have a few
suppliers (such as PINsentry, Kaspersky, and Microsoft), but
their products are of relatively little importance and, if
needed, could easily be replaced by in-house Barclays
solutions.
The suppliers of funds to bank are depositors. Banks, in turn, pay
interest rates to service suppliers as a cost of borrowing. Higher
interest rate on deposit is the main factor in attracting people to save
in banks. the network system and branches may also be important
to gain and retain depositor/suppliers.
Barclays response to the Bargaining Power of the Suppliers
• By building efficient supply chain with multiple
suppliers including depositor/supplier
• Developing dedicated suppliers whose business
depends upon the bank.
This makes the bargaining power of suppliers to be moderate.
