Another Force is the Power of Supplier. This does not onlyrelate to actual materialistic suppliers, but in many cases, reflects on otherparts of the supply chain such as supporting services, financial resources andknow-how. According to Wilkinson (2013),strong suppliers negatively affect the industry by raising prices, evenlowering product quality and controlling product availability on top of that.Meanwhile weak suppliers make an industry less competitive and more profit can bemade.

 In the automotive industrythe companies are highly dependent on their suppliers. BMW Group (2017) states on their homepage, that their suppliernetwork makes a major contribution to their success. They have round about13,000 suppliers in 70 different countries.The BMW Group has to make sure the supply chain is workingproperly at all times. So, they have to limit the risk factors to a minimum.This means potential disorders and deviations have to be identified, analysedand managed.

Best way is to prevent those instanced to happen.Since 2009 BMW Group works together with their suppliers toassess their sustainability management. This highly reduces the risk of majorproblems with the suppliers. On top of that, the BMW group collaborates withtheir suppliers to strengthen their potential to manage their resourceefficiency and offering training courses to their employees. This management strategyleads to a strong bound between BMW and their supplier and reduces the risk ofthe Supplier to misuse their power by stopping to deliver parts for example andharm the industry.There is another problem with the suppliers, that can occur soon.All these innovative technologies rising up for the automotive industry aregetting more and more difficult to replicate, therefore only a few suppliersremain.

Those can demand horrendous prices for their products, and BMW Grouphas to manage this to remain in competition with the other big brands, such asMercedes and Audi. 

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