Page 29 - Case Lab Teaching Note

Bargaining power of suppliers

Suppliers provide raw materials such as potatoes, spices and other

ingredients. The primary raw material - Potatoes- is in-house
produced at Tyrrells Farm using heritage stock providing a
substantial competitive advantage.

Higher cost of input commodities leads to lower margins, making the
market unattractive for distributors and retailers (in an already low-
margin, high-volume market)

Shortage of any input material may also affect production and
thereby impact distribution e.g. weather

Veteran players like Burt and Kettle already have a well-established
network of suppliers.