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Buyer Power Is The First Force

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Buyer power is the first force from Michael Porter’s Five Forces. Buyer power is high when buyers have many choices from which to buy and low when their choices are few. Any industry would want to lower buyer power to create more of a competitive advantage. When buyers have less to choose from its makes it more likely to have a chance of having your particular company chosen. Any group or company can be the first to do something but soon another will follow suit. The reason a company was chosen is because of a new innovative form to deliver a particular item or service. When another company creates something similar, competitive advantage has been lost. The movie rental industry has changed vastly throughout the years. Blockbuster was the driving force in movie renting now Redbox and Netflix are leading the game. Netflix was the first person to provide movie rentals online, of course now Google Play YouTube, Apple, and Amazon provide that service as well. Supplier power is the second force; supplier power is high when buyers have few choices from which to buy, and low when their choices are too many. A supplier organization wants to be high and wants buyer power to be low. There are many ways a supplier can decide whether their going to be high power or low power. One way they create high supplier power is they obtain patents and trademarks, to prevent duplication of tools. Netflix has over fifty patents and grants ensuring that other companies will not offer other
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