The power of the supply chain studies can be easily explained by illustrating the marketing channels and the ability of the power is defined as the ability of the channel member for controlling the marketing strategy. It helps in controlling the given channel in the form of the various levels of the distribution. The power in the supply change is defined as the ability of the firm to control the critical assets in the market and the supply chains are allowed for sustaining the ability of the competitors in an appropriate way. This is simply defined to be the ability to accumulate the values and allow sustaining the ability (Drake, 2012). This influences the strategies by utilizing the prefixed objectives, and as a result, positive outcomes can be easily achieved in the form of the decisions undertaken by the firm. The power plays a major role in influencing and determining the control of the behaviours and the intentions.
Key factors to control level of power
The key factors which are identified to be controlling the level of the power are provided in the following points:
Utility: The utilities represent the supply chain agenda which enables in changing the substantiality of the organizational focus. This explains the challenges regarding the cost entertainment with explaining the cost entertainment. This enables the supply assurance and manages the risks involved in the business.
Scarcity: The scarcity represents the scarce materials which are identified in the business, and it illustrates the appropriate management of the inputs provided to the business. This explains the nature of the inputs provided to the business in the form of the materials and the scarcity is identified to be the risk in the business if it is not mitigated. It enables in developing an imbalance in the power level (Hugos, 2013).
Information asymmetry: The information asymmetry represents the maintenance of the information at the individual level of the supply chain. The gathering of the information is made for the purpose of securitizing the organizational conduct, and this enables the control of the power level.