558 Words3 Pages
Bargaining power of customers: The bargaining power of customers is a key output for the markets were the ability of customers, situate the company to change prices based on sensitivity of the product. Companies can manage the purchasing power by implementing loyalty program. Potential factors: Provider relating to the company's switching transition degree of differentiation of inputs costs Impact input on costs or differentiation in the presence of substitute inputs distribution concentration of supplier channel force to firm concentration ratio employee solidarity (e.g. the labour union) Provider competition: The ability to move vertically integrate and cut to the purchaser. Bargaining power of vendors: Amongst the five competitive forces, bargaining power of suppliers is one of the influencing force that determines the intensity of competition in an industry. The others are barriers to entry, industry rivalry, the threat of substitutes and the bargaining power of buyers. Power of supplier group: The following conditions indicate that a supplier group is powerful • It is d...

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