Factors of Bargaining Power

 Factors of Bargaining Power

The bargaining power can be classified as under

1. Bargaining power of customer
2. Bargaining power of supplier

Important factor of Bargaining power of Customer

1. Customer ability to buy
2. Importance of product to the customer
3. Customer ability to switch to other supplier
4. Availability of supplier
5. Quality related issue of product
6. Procurement office ability and skills

Important factor of Bargaining power of Suppler

1. Market Nature (Monopoly etc)
2. Possibility of new entry in the market
3. Uniqueness of supplier product
4. Customer switching cost and ability to switch