Bargaining power of channels and end users

Bargaining power of channels and end users tends to be high of the industry displays the following characteristics:

• High concentration of buyers
  • Leverages purchasing power through pooling
• Strong fragmentation of suppliers
  • Which makes it difficult to come to a joint approach in pricing
• A high degree of market transparancy
  • Which allows buyers to easily compare prices
• Products are increasingly becoming commodities
  • Resulting in little differentiation
• Low switching cost and weak networking effect
  • Which makes it easy to switch suppliers