BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -An assessment of how easy it is for buyers to drive prices down. This is determined by: the number of buyers in the market; the importance of each individual buyer to the business; and the cost to the buyer of switching from one supplier to another.

Detailed explanation-2: -Supplier power. An assessment of how easy it is for suppliers to drive up prices. This is driven by the: number of suppliers of each essential input; uniqueness of their product or service; relative size and strength of the supplier; and cost of switching from one supplier to another.

Detailed explanation-3: -Power of Customers The ability that customers have to drive prices lower or their level of power is one of the Five Forces. It is affected by how many buyers or customers a company has, how significant each customer is, and how much it would cost a company to find new customers or markets for its output.

Detailed explanation-4: -What is the Bargaining Power of Buyers? The Bargaining Power of Buyers, one of the forces in Porter’s Five Forces Industry Analysis framework, refers to the pressure that customers/consumers can put on businesses to get them to provide higher quality products, better customer service, and/or lower prices.

Detailed explanation-5: -Buyer power refers to a customer’s ability to reduce prices, improve quality, or “generally play industry participants off one another.” Buyer power examples include larger and influential customers demanding higher-quality products for lower prices.