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No of buyers v No of suppliers
The bargaining power of buyers is low as Sheng Siong sells
differentiated products in terms of the freshness of food, high quality,
good customer service and low prices. However, for its common
products, the bargaining power of buyer is high as customer can easily
switch to other suppliers.
Volume of purchase by single buyers
An individual buyer has low bargaining power as the buyer does not
have much impact on the earnings of Sheng Siong. However,
collectively, buyer may have power as the consolidated power of
buyers may have an impact on Sheng Siongs profitability.
Importance of product for cost and quality
Customer would want to purchase good quality products at low cost.
No of alternative products available
Alternative products such as online grocery are available and this
increase the bargaining power of the power due to the convenience
and low switching costs.