Porters Five Forces of Buyers refers that - the ability of

customers of the industry to influence the price and terms of purchase.

IF:

1. The buyer is large and the supplier is small

2. There are few buyers and many suppliers 3. Undifferentiated Product 4. Backward Integration 5. Substitutes are available 6. Forward Integration

 By differentiating our products or services Generic Strategy Cost leadership

Targeting less price sensitive buyers

Understand your product or service costs and be ready to walk away from any deal that is wrong Make sure youre not trying to sell an over-engineered or re-specified solution

Industries Facing Powerful Buyers:

1. Defence Contractors 2. Sub Contractors to Car Makers

Industries Facing Weak Buyers:

Retailers face individual consumers with little or no power to all