Bargaining power of buyers

Bargaining power of buyers (customers) is one of five part of Five forces analysis and depends on:

  • degree of concentration of the buyer sector,
  • dependence of the quality of the final product on the quality of the buyers results
  • uniqueness of product
  • large share of the supplier in creating the buyer's profit
  • ease and cost of changing the supplier
  • possibility of the buyer taking the production of the final product
  • focus of competitive struggle in the buyers sector.
  • buyers can exert pressure on lowering prices
  • high power of customers can increase competition in the sector
  • power of buyers depends on the quantity and quality of information about the market


At work.png

This is an article stub.
If you are able to help improve this article, please feel free to edit it.