Bargaining Power of Buyers
Essay Preview: Bargaining Power of Buyers
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Factors that make buyer powerful:
Buyer purchases large volumes of the sellers product
Products purchased by the customer represent a significant portion of its costs or purchases
Products purchased are stand or undifferentiated
Face few switching costs
Factors that make buyer powerful:
When buyers have the ability & resources themselves to manufacture the products they are purchasing from the industry
If industrys product isnt important to the quality of buyers products
If buyer can get full information about product demand, actual market prices & supplier costs
One who create a new, innovative economic organization in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying significant opportunities and assembling the necessary resources to capitalize on them.
price oriented during recession period and the TV market is saturated my oligopoly structure with very few players, in the long run newentries will have to compete with the established brands . Thus, at present, threats of new entries are
moderate
for the TV industry.
THREATS OF SUBSTITUTE:
TV is one of the entertainment products, where there are several substitute from home entertainment to leisure activity. Such alternatives cangreatly impact on TV market. However, laptops and PC are the closest substitutes as they have wider functions in addition to the televisionfunction. For example, in present context most of the teenagers prefer to have a laptop and an i-phone rather than having a TV. Similarly, interms of increased use of internet also laptops and PC s are highly substituted with TV set s. Thus, increased broadband penetration, speedsand variety of services, from video catch -up to sites based on user-generated content have resulted more in the watching the PC than TVscreen. But, TV industry has modified its function by making availability of online video connection and also allowing access to onlinecontent on the big screen which have been able to attract lots of customers to watch more TV than PC. Even though PC and Laptops are thesubstitutes of TV, it¶s very hard for them to overtake the market share s of TV industry because of the satisfaction that customer s gain bywatching TV rather than PC or laptop as the customer wants to watch in bigger screens (more than 60%, Mintel report, 2009). And another reason is that PCs and