By placing this type of question in the pharmaceutical industry, the result is quite favorable for the supplier. Attempts are made to address the problem of the buyer's lack of bargaining power with strategies such as government policies or subsidies to those who cannot afford it, tax incentives for smaller companies that operate by creating competition, and bulk purchasing by organizations such as HMOs. and PPO. (Business Data Insight, 2013) THE BARGAINING POWER OF SUPPLIERS Chemical suppliers do not have as much bargaining power as customers. Chemical entities are almost a commodity; therefore their competition is regulated by price. However, there are examples of a few chemical companies that have managed to successfully integrate downwards; examples include Orchid Chemicals & Pharmaceutical, Dr. Reddy's Laboratories and Shasun Pharmaceuticals. In recent years we have witnessed the existence of a new type of supplier. CRO and biotech companies support leading pharmaceutical companies through different stages of research and development. Examples of support offered include existing knowledge on new chemical entities and pharmaceutical trials. However, this does not pose much of a threat because they do not have significant expertise in many of the essential elements and are more dependent on pharmaceutical companies than pharmaceutical companies on them. (Business Data Insight, 2013)Generic industry type