Understanding Supply Markets and Competition


The concept reviews the main characteristics of supply markets and some of the competitive factors affecting them. It describes the relevance of Porter’s five forces analysis and explores other factors that should be considered when assessing competition.

Technique Overview

Understanding Supply Markets and Competition Definition

Understanding supply markets and competition is imperative for strategic sourcing, which refers to "satisfying an organisation’s needs from markets via the proactive and planned analysis of supply markets and the selection of suppliers, with the objective of delivering solutions to meet pre-determined and agreed organisational needs" (CIPS Australia. How Do We Measure Up?).

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Further Reading

Understanding Supply Markets and Competition web and print resources *

Understanding Supply Markets and Competition references (4 of up to 20) *

  • Bartolini, A. and Dwyer, C. (2008) Spend Analysis: Pulling Back the Cover on Savings. Aberdeen Group: October.
  • CIPS Australia. How Do We Measure Up?
  • Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L. (2009) Purchasing and Supply Chain Management. South-Western Cengage Learning: Mason, OH.
  • Pandit, K. and Marmanis, H. (2008) Spend Analysis: The Window into Strategic Sourcing. J. Ross Publishing: Florida.

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