Porter’s Five Forces
(Buyer Power)
• Bargaining Power of Buyers
Increases with:
– Monopsony / Small Number of
Buyers
– Buyer Information
– Buyer’s Increased Ability to
Integrate Backwards
– Standardized Products / Low
Switching Costs for Buyers
– High Customer Switching Costs
– More Open Transactions Reduce
Buyers’ Costs of Searching for
Products, Increasing their
Bargaining Power
©2006 - 2007 Franteractive Inc. All rights reserved.
