Does intense rivalry give customers high bargaining power or is it the other way around? Powerful...

Does intense rivalry give customers high bargaining power or is it the other way around? Powerful buyers drive rivalry intensity perhaps?

Expert Solution

Intense rivalry does not give customers high bargaining power. High bargaining power of customers will be high if customers will be able to put some collective pressure on the industry or company. If the customers' percentage will be higher that it will directly impact the sales revenue of the company then their bargaining power will be higher. Sometimes, intense rivalry give customers high bargaining power when switching cost of customers will be high. If customers find something better than their present company or industry then they will surely switch to other company where they got more profits and discounts.

Powerful buyers drive rivalry intensity perhaps, if buyers will be able to get gathered and put pressure on any particular industry then it may be possible that other industries attract and influence those buyers and that will automatically create intense rivalry among the industries.

keosha answered 3 months ago

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