Competitive Pressures stemming by Seller-Buyer Collaboration

Question

Illustrates the Competitive Pressures stemming from Seller-Buyer Collaboration and Buyer Bargaining Power?

Answer 1

Whether seller-buyer relationships present a strong or weak competitive force depends on:

i. Whether some or many of the buyers have enough bargaining leverages to provide price concessions and other favorable conditions and terms of sale.

ii. The competitive and extent significance of the seller-buyer strategic partnerships in the industry.

How Buyer Bargaining Power Can Create Competitive Pressures: The leverage that finite kinds of the buyers have in negotiating favorable terms can range from weak to strong.