Friday, January 15, 2010

Bargaining power of buyers

Bargaining power of buyers: This is about the consumer or customer of our product. If there is more number of customers to our product then the business will go smoothly. Even if one part of customers is not satisfied we can able to focus on remaining part of product. Let me give two examples so that you could able to understand this force. Take supermarket business, the number customer is much more compare to some other business. 
Buyers will be more powerful if there is only less number of customers and there is more number of service providers. If there are only few standardised products and it is difficult for customer to switch from one product to another product then the buyer will become less powerful. If there is less number of customers then they will have a power to set the price. Service provider forced to give the products to them.

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