D.R. Horton, Inc. is a large firm with revenues over 10 billion, which gives them substantial bargaining power as a buyer. The enormous purchase orders allow Horton to buy at a discounted price relative to smaller homebuilders. However their power is limited because Horton does not compete in a monopolistic industry; there are other large firms that suppliers are able to sell to. Horton is, however, limited to the amount of bargaining power it retains. Suppliers of labor such as sub-contractors have a high impact on D.R. Horton, Inc. Due to the large number of firms in the industry Horton does not have much bargaining control over sub-contractors; therefore the sub-contractors usually dictate their cost of labor. Also, limited resources
