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    Nisha

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    Rahul Baduk
    The bargaining power of buyers can affect a firm's profitability. Buyers can force down prices, demand higher quality or more services, and play competitors against each other. Key determinants of buyer power include how important the product is to the buyer's costs, whether the product is standardized or differentiated, the volume of purchases relative to the seller's total sales, switching costs, the buyer's own profitability, potential for backward integration, and the importance of the industry's product for the buyer's product or service quality.

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    Nisha

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    Rahul Baduk
    6 views3 pages
    The bargaining power of buyers can affect a firm's profitability. Buyers can force down prices, demand higher quality or more services, and play competitors against each other. Key determinants of buyer power include how important the product is to the buyer's costs, whether the product is standardized or differentiated, the volume of purchases relative to the seller's total sales, switching costs, the buyer's own profitability, potential for backward integration, and the importance of the industry's product for the buyer's product or service quality.

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    The bargaining power of buyers can affect a firm's profitability. Buyers can force down prices, demand higher quality or more services, and play competitors against each other. Key determinants of buyer power include how important the product is to the buyer's costs, whether the product is standardized or differentiated, the volume of purchases relative to the seller's total sales, switching costs, the buyer's own profitability, potential for backward integration, and the importance of the industry's product for the buyer's product or service quality.

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    6 views3 pages

    Nisha

    Uploaded by

    Rahul Baduk
    The bargaining power of buyers can affect a firm's profitability. Buyers can force down prices, demand higher quality or more services, and play competitors against each other. Key determinants of buyer power include how important the product is to the buyer's costs, whether the product is standardized or differentiated, the volume of purchases relative to the seller's total sales, switching costs, the buyer's own profitability, potential for backward integration, and the importance of the industry's product for the buyer's product or service quality.

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    BARGAINING POWER OF BUYERS

    The bargaining power and potential for backward integration of buyers may effect a firm

    FOR EXAMPLE
    BUYERS COMPETE WITH THE INDUSTRY BY FORCING DOWN PRICES ,BARGAIN ING FOR HIGHER QUALITY OR MORE SERVICE S AN D PLAYING COMPTITERS AGAINST EACH OTHER ALL AT THE EXPENSES OF INDUSTRY PROFITABILITY

    IMPORTANTS DETERMINANTS OF THE BUYER POWR, EXPLAINED BY THE PORTER ARE THE FOIIOWING
    The importance of the product to the buyer in terms of the total cost . The extent of the standardization or differentiation of the product . The volume of purchase relative to the total sale of the seller . switching of cost . Profitability of the buyers . Potential for backward integration by buyer . Importance of the industry s product with respect to the quality of the buyers product or service . Extent of buyers information.

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