Attaining Bargaining Power over the Intermediate Firm from Supplier-Buyer Alliance: A Case from the Motion Picture Industry

Abstract

This paper focuses on a proactive approach to bargaining power attainment via supplier-buyer alliance in a Five Forces framework. The case study first comprehensively analyzes the motion picture industry with the Five Forces Model, and incorporates the Resource Based View to illustrate the bargaining power of suppliers. An empirical case from the industry is discussed to exemplify the supplier-buyer alliance as a potential strategy to attain bargaining power in the supply chain. The foundation of the alliance is established on the heterogeneity of the bargaining power of buyers and suppliers. The process of bargaining power borrowing from the buyers to the suppliers can be observed in this relationship. This paper also proposes social media as a major form of the supplierbuyer alliance and points out the importance of a balanced social media presence. This study suggests that firms that play as suppliers in the supply chain should proactively seek sources of bargaining power by building the supplier-buyer alliance.