What Factors Influence the Bargaining Power of Buyers?
The bargaining power of buyers is affected by:
Buyer Concentration: A small number of large buyers can exert more influence over suppliers. Product Differentiation: If products are highly differentiated, buyers have fewer alternatives, reducing their bargaining power. Price Sensitivity: Buyers who are highly price-sensitive can leverage their purchasing power to negotiate better deals. Switching Costs: Low switching costs for buyers increase their bargaining power because they can easily switch to competitors.