Bargaining Power of Customers
The bargaining power of customers determines how much customers can impose pressure on margins and volumes. Customers bargaining power is likely to be high when·
oooThey buy large volumes, there is a concentration of buyers·
oooThe supplying industry comprises a large number of small operators·
oooThe supplying industry operates with high fixed costs·
oooThe product is undifferentiated and can be replaces by substitutes·
oooSwitching to an alternative product is relatively simple and is not related to high costs·

posted by Abd r Rehman