Essay About Position Of Buyers And Bargaining Power

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must follow as pointed out by Mr Hrstić refer to the
fact that smaller shopping chains are becoming
more successful than the large ones suggesting
stronger competition among the participants on
the retail market. Besides, concentration trends on
the retail market are on one hand characterized by
takeovers while, on the other hand local traders
expand their operations to other counties becoming
in that way increasingly important on the national
level. In addition to the ownership concentration,
their bargaining power is increased because of
interest groups created for the purpose of joint
purchasing and stronger competivity in relation
to the market leader. An increasing number of
shopping chains are opening their own baking
production within their selling locations. However,
even from the position of buyers they gain
considerable added value which, with easy access
to information and many other benefits offered by
other participants of the bakery industry, makes
their bargaining power stronger and they are well
aware of that. In support to the strong position of
buyers there is the fact that bakery products are
similar and replaceable without differentiating
factors which allows the buyers to change suppliers
very easily with minimum costs.
A particular feature of bakery products is that they
are consumed on a daily basis. For that reason
traders want to make sure that the quality of their
offer attracts consumers and that they come to
their shops every day. Besides, the intensity of
rivalry among buyers is very strong diminishing
their profitability and resulting in the pressure on
suppliers in order to reduce costs. The mentioned
reasons explain why Hrstić bakery craft distributes