Bargaining Power of Buyers

Definition: Bargaining Power of Buyers is one of the 5 forces in Prof. Michael Porter's Five Forces Model, a framework used to analyze competitive dynamics within an industry. This model helps companies understand the forces that shape competition in their market and the broader industry context. Bargaining Power of Buyers specifically refers to the influence that customers (or buyers) have on the price and terms of the products or services that a company offers.
Porter identified various factors that make buyers more and less powerful in influencing a company.

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