Page 43 - BrewDog Industry Analysis
P. 43
4. Bargaining Power of Buyers
Customers -V- Prices
If buyers have market power, they are able to negotiate
lower prices, better quality, or additional services and
discounts.
Powerful customers can exert pressure to drive down
prices, or increase the required quality for the same price,
and therefore reduce profits in an industry.
An example in the UK currently is the dominant grocery
supermarkets which are able exert great power over
supply firms - milk, sheep.
