The industry being analyzed is the tobacco industry. The tobacco industry manufacturer cigarettes, snuff, chewing tobacco, etc. Customersa.The customers are the wholesalers and retailers of tobacco products. There are a large amount of customers in this industry, which makes the customers not very powerful.b. I believe the customers do make high-volume purchases, which would make them powerful.c. The purchases customers make from the industry are the same relative to the amount expended for items from other industries. This causes the customer to have moderate power.d.The products customers are buying are differentiated because the customers are selling to people who want a certain brand of cigarette, snuff, and tobacco, etc., making the customers buy from a specific company that sells those brands. This weakens the power of the customer.e.I believe there are a wide variety of customers and therefore the profitability of each customer varies. The customers who earn low profits are under pressure to keep the costs of their purchases down. This type of customer would be powerful. On the other hand, the customers who earn high profits are not as concerned with the costs of their purchases, making them not as powerful. Overall, when it comes to customers making profits from this industry, they would have a moderate amount of power.f.The customers can easily obtain accurate information on the selling industry. This gives the customer power when it is time to negotiate the cost of the products.g.The customers can not easily vertically integrate backward and become their own supplier, It would be too difficult for a wholesaler or retailer to start making tobacco products. This makes the customers not very powerful.h.Customers can easily switch from one seller to another making themselves powerful.i.Overall, I think the customers have a moderate amount of power.Suppliersa. The suppliers are the growers of the tobacco. There are few suppliers...
