Difference between revisions of "Bargaining power of channels and end users"

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Bargaining power of channels and end users
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Bargaining power of channels and end users tends to be high of the industry displays the following characteristics:
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* High concentration of buyers
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** Leverages purchasing power through pooling
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* Strong fragmentation of suppliers
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** Which makes it difficult to come to a joint approach in pricing
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* A high degree of market transparancy
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** Which allows buyers to easily compare prices
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* Products are increasingly becoming commodities
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** Resulting in little differentiation
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* Low switching cost and weak networking effect
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** Which makes it easy to switch suppliers
 
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Latest revision as of 19:53, 27 August 2020

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