Table of Content

The bargaining power of suppliers

It illustrates how far suppliers are able to affect the price, if there are numerous suppliers, customers can shift from one supplier to another one. However, numbers of suppliers are really low; firms raise the price up and control it.

The bargaining power of customers

It refers to how customer impacts the price and quality of either product or service. There are many factors define the bargaining power of customers, if there are few customers, it is easy for them to affect. Total volume of purchasing product is also important factor in defining the power of customers.