• Buyer power is the bargaining strength of the buyers of a product or
service. It is a function of buyer concentration, switching costs,
levels of information, substitute products,and the offering’s impor-
tance to the buyer. Informed,large buyers have much more leverage
over their suppliers than do uninformed, diffused buyers.
• Supplier power is the degree of leverage a supplier has with its cus-
tomers in areas like price,quality,and service.An industry that can-
not pass on to its customers price increases from its powerful sup-
pliers is destined to be unattractive. Suppliers are well positioned if
they are more concentrated than the industry the ...