Since 2006, HD increased its operating margin through efforts such as developing its supply chain management, which reduced cost of transportation and inventory, and developing a formal distribution channel which increased bargaining power over suppliers.

FORBES: Five Stocks Set To Surge On A Housing Uptrend

This means that economies of scale arise on the supply side of the market, on the savings from a larger production batch with the same fixed resources, on gains from improved bargaining power with suppliers.

FORBES: Is Groupon's Business Model Sustainable?

His customers have started to look for rival suppliers in order to increase their bargaining power.

ECONOMIST: Face value

The company has little bargaining power with product suppliers, and no barriers of entry to protect its businesses from competition.

FORBES: Is Groupon's Business Model Sustainable?

Additionally, the company can utilize its substantial bargaining power with its suppliers, reducing the impact of industry-wide input cost increases and sustaining profit margins.

FORBES: Nike Needs To Raise Prices Or The Stock Is Toast

The combined firm will have greater economies of scale and more bargaining power with handset and equipment suppliers.

ECONOMIST: Sprint and Nextel

Over the next five years his company plans to increase its number of beds to 30, 000, making it the largest private-hospital group in India and giving it more bargaining power when it negotiates with suppliers, thus driving down costs further.

ECONOMIST: The charms of frugal innovation

HMOs have the bargaining power to squeeze discounts from their suppliers, whether hospitals, drug firms or doctors.

ECONOMIST: Your money or your life

As almost the sole buyer of health services, the state enjoys great bargaining power over doctors, nurses, and other suppliers.

ECONOMIST: Browned off with Blair?