Supplier power can have several implications for new ventures:
1. Cost Implications: High supplier power can lead to increased input costs, squeezing the margins of startups. Entrepreneurs must find ways to manage costs effectively.
2. Quality Control: Suppliers with significant power may exert less effort in maintaining quality standards. Entrepreneurs should implement stringent quality control measures.
3. Innovation Constraints: Dependence on suppliers for critical components can limit a startup's ability to innovate. Entrepreneurs should explore alternative sourcing or in-house development options.