Bargaining power of suppliers is one of the most important component of the Michael porter five factor Model and one of the example of bargaining power will be that when the supplier will be trying to force the company to reduce the quality of the product.

It can also force the management to Raise the price and reduce the quantity of the goods available so that it will be helping the supplier in order to maximize their rate of return.

They are affecting the organisational strategy because their impact in the overall profitability of the organisation and the overall business structure of the organisation because they are always so forcing the management to act in their interest other than acting in the interest of customer.