Please enable JavaScript.
Coggle requires JavaScript to display documents.
Force 2 - Bargaining power - SUPPLIERS AND BUYERS (Buyers - High Power…
Force 2 - Bargaining power - SUPPLIERS AND BUYERS
Greater power for suppliers
Less profit for business
Supplier capture value
Suppliers - High Power when
Switching costs high
Moving provider
Difficult
Expensive
Stuck
Example
ICT packages
Not compatible
concentrated suppliers
Perfect comp
Ideal
lower supplier prices
Monopoly
Bad
Higher supplier prices
Information
Lack of it
Some have more than others
Better position
Information is power
Suppliers become competitors
Enter market
Offer unique/niche supplies
Legal services
Engineering
Supplier cost high
most of sold cost
Cars
Buyers - High Power when
Switching costs are low
easy to move providers
Buyers pose competitive threat
Enter industry
Concentrated buyers
Low
High Bargaining power
Many
Low bargaining power
Information
Access to limited information
Lower buying power
Unsure of choices
Access to lots of info
Increased knowledge
Increased buying power
Buyers
Consumers
Customers
Clients/buyers
Commodity according to buyers
Price sensitive
Cant charge more
Little differentiation
Buyers price sensitive
Product/Service
Represents
Large portion of their costs
Airline fuel EG