COMPETITIVE FORCE OF BUYERS
COMPETITIVE FORCE OF BUYERS
- Buyers are a strong competitive force when
- They are large & purchase a sizable percentage of industry’s product
- They buy in volume quantities
- They incur low costs in switching to substitutes
- They have flexibility to purchase from several sellers
- Selling industry’s product is standardized
- They can integrate backward
- Product being purchased does NOT save buyer money or has low value to buyer