Porter's Five Forces Of Buyer Bargaining Power

2009 Words May 19th, 2016 9 Pages
Porter 's five forces of buyer bargaining power refers to the pressure consumers can exert on businesses.
In the case of IND, the applicant with the most buyer 's power would be Walabie Council, which has contributed a grand total of $9,032.30 and 29% of IND 's income, with Milford Building having the least buyer 's power with $505,20 and 2% of IND 's total income as seen in the pie chart below.

Over 90% of IND 's income comes from just the top 5 sources (AD, HA, SC, PC, WC)
And nearly 70% of income comes from just 3 sources (HA, WC, SC), which would indicate a large gap of buyers power between IND 's Consumers. This means that IND would more likely to profit from focusing on the big clients rather than developing more clientele.
Porters 5 forces IND risk assessment

Supplier Power

As the sole supplier of IND 's permits would be the government agencies, it could be said that the government has a supply monopoly on IND giving them all the supplier power, but since the sole supplier is the government, they are unlikely to abuse their supplier power or even do anything that utilises their supplier power to increase IND 's costs at all. This puts IND in a good predicament in that their sole supplier would not use any of their supplier power.

Threat of Substitution

IND 's key service, surveying and issuing permits would be hard to substitute. As they are both protected and required by relevant laws and legislation. There is not a current legal substitute for permits or…

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