BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The bargaining power of the buyers helps in attaining good quality products or services from the companies at the lowest possible prices. They have strong bargaining power if they find the quality of the products or services does not match with standards.

Detailed explanation-2: -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-3: -The presence of powerful suppliers reduces the profit potential in an industry. Suppliers increase competition by threatening to raise prices or reduce the quality of goods and services. As a result, they reduce profitability in industries where companies cannot recover cost increases in their own prices.

Detailed explanation-4: -Buyer bargaining power refers to the ability of customers to influence pricing. If the number of buyers in a particular industry is lower than the number of suppliers, they possess greater bargaining power. This is affected by the number and size of customers, concentration of customers, and switching costs.

Detailed explanation-5: -Weak Bargaining Power of Buyers In practice, the bargaining power of buyers is considered low (or weak) when: Buyers are more than sellers. Switching costs are high. Backward integration is unattainable.