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.
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Which would mean IND 's customers would have higher buyer 's power than a business that adopts the Customer to Customer model. This is explained in the above analysis of which of IND 's customers have the most buyer 's power and which to focus for increased profitability.

Competitive Rivalry

The nature of the surveying industry means that it would have a high barrier to entry with industry regulations and other factors explained in Threat of New Entry above would mean a low number of firms in this industry. Given the limited information on the state of Market IND is in, I will use statistics and facts from the current industry report on australia. The current industry conditions in victoria has 3,650 businesses and a slow annual growth between the years of 2011-2016 of 0.8% which would mean a small market size comparatively to our economic prospects, making competition and rivalry relatively rare.

Knowledge management in IND

"Knowledge management is the process of capturing, distributing, and effectively using knowledge." It is commonly used by many small businesses such as IND to Facilitates Decision making capabilities and improves hindsight and learning capabilities. By analysing data and converting them into valuable business intelligence, IND could hope to analyze and forecast future growth and industry demands and

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