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 2 months ago

Discuss the sources of power in bargaining. Give examples of use of power during the negotiation...

Discuss the sources of power in bargaining. Give examples of use of power during the negotiation process.

Firms that buy inputs from suppliers have more bargaining power when: A. there are many other...

Firms that buy inputs from suppliers have more bargaining power when: A. there are many other buyers in the market B. they purchase a relatively small quantity of product C. the costs of switching suppliers are low D. the suppliers sell highly differentiated products If a firm successfully differentiates its product from other products in the market, then we should expect the elasticity of demand for the differentiated product to become: A. We do not have enough information to answer...

A factory does the production around the river. On the other hand, a fisherman does the...

A factory does the production around the river. On the other hand, a fisherman does the fishing in the river. Now, if a factory produce one unit, the benefit of fisherman decrease by 6 due to the pollution. A factory has the right to use the river, price of goods=P=20, C（Q）=Q² ※cost=C （1）what is the production quantity Qm to maximize the benefit of factory? （2）when the fisherman negotiates with the factory, the production quantity in the factory decreases by social...

Give a high-level description of a TM (how it moves its head around, etc.) that takes...

Give a high-level description of a TM (how it moves its head around, etc.) that takes a string of the form x#y where x, y ∈ {a, b}* are guaranteed to have |x| = |y| ≥ 1, and swaps x and y (i.e., it should halt with y#x written on the tape). For example, if the input is abb#bab then the output should be bab#abb. Do not give a state diagram. Use the “marking” idea to keep track of where...

Do you believe that social media ads are an effective way to reach customers? Does this...

Do you believe that social media ads are an effective way to reach customers? Does this depend on factors? What types of social media marketing do you find most appealing and why?

In what way does the Federal Reserve have a high degree of instrument independence? If it...

In what way does the Federal Reserve have a high degree of instrument independence? If it has a specific dual mandate from Congress to achieve “maximum employment and low, stable prices”, then how does it have goal independence?

In what way does the federal reserve have a high degree of instrument independence? If it...

In what way does the federal reserve have a high degree of instrument independence? If it has a specific dual mandate from congress to achieve maximum employment and low, stable prices, then how does it have goal independence?

Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of the...

Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Lake has little information about the ability to collect these receivables, it uses the cost recovery method to recognize revenue on these installment sales. In 2017, Lake began operations and sold jet skis with a total price of $840,000...

Does globalization increase standards of living around the world, or suffocate other cultures under an onslaught...

Does globalization increase standards of living around the world, or suffocate other cultures under an onslaught of Big Macs and Coca Cola?

What is considered high and low power factor? Can you give four examples of appliances that...

What is considered high and low power factor? Can you give four examples of appliances that have a high power factor and explain why? Can you give four examples of appliances that have a low power factor and explain why?

Question