Bargaining power of buyer
Bargaining power of buyer refers to the ability of individual customer to negotiate prices that extract profit from the seller. Buyers are more price sensitive when the product is undifferentiated and there are few switching costs. The buyer's bargaining power is determined by the number of buyers. In automotive industry, consumers do not have much buying power as they ever purchase huge volumes of cars and switching cost are relatively low (Palepu, K G. et al. , 2007).