Marketing Major, Management Major

1500 Words6 Pages
CONSUMER TECHNOLOGY INDUSTRY JANELLE IRONS MARKETING MAJOR, MANAGEMENT MAJOR Z23154652 GLOBAL STRATEGY AND POLICY MAN4720 PROFESSOR HARRY SCHWARTZ SEPTEMBER 30, 2014 POWER OF THE BUYER HIGH • Many of the products in this industry aren’t much differentiated. “Buyer switching costs are low, and it is generally quite difficult for the players to differentiate themselves because, as a rule, the products players stock are purchased from the same manufacturers. Players therefore compete on service, and only very rarely on product.” (MarketLine Industry Profile) • There are a lot of alternate suppliers because the products are pretty standard so the user doesn’t have a defining feature to cling to, making it hard for the supplier to charge any price without repercussions. • In Business to Business the buyer has power because there is a variety of other suppliers that make computer chips or rechargeable batteries for less. • In the phone category, the biggest difference is in operating system (iOS, Android, Microsoft) pushing the supplying industry to make a phone with an operating system that is user-friendly, or the buyer will look elsewhere. • Buyer income also plays a role. Consumers with a low income are very sensitive to price changes and will often look around in great detail before deciding on a product. The decision is less about features and uniqueness but based more on price. Phone shoppers often sacrifice features for price. • “A new gadget is not exactly a
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