Explain how the bargaining power of buyers can drive down profits for a particular product. What measures
can be taken by an organization to counter this?
What will be an ideal response?
Powerful buyers (such as organizations that purchase much of the industry's capacity) can drive down profits by
demanding lower prices on products and services, especially those that buyers see as undifferentiated, commodity
items. Industry firms can counter the bargaining power of buyers through various means such as showing that the
product or service is essential to successful operation.
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A) Supplementary B) Dragalong C) Gross D) Cumulative E) Net
Country Kitchen and Perkins are both a chain of family restaurants featuring diner-like menus with reasonably priced items. These companies are in the same ________
A) focus group B) control group C) strategic group D) target group E) experimental group