Discuss the bargaining power of buyers (within the topic below) in the U.S. footwear manufacturing industry where the buyers are the wholesalers and distributors? Give support and concise examples.
Price sensitivity: Are buyers price sensitive? This deals with elasticity of demand. Is the industry able to pass cost increases on to the buyer, or must they absorb them? If buyers are not price sensitive, this gives the industry power and makes it attractive.
Price to total purchases Do the buyers’ purchases of this industry’s product/service represent a significant percentage of their total purchases? If so, this would give the industry power over the buyers. They would be dependent on a constant supply of goods or services for their survival.