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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).

Marks and Spencer

Marks and Spencer PLC is one of the UK's leading retailers of clothes, food, home products and financial services, with over 375 stores. In addition, the company has 155 stores managed under franchise in 28 territories, mostly in Europe, the Middle East, Asia and the Far East, as well as stores in the Republic of Ireland and nine wholly owned stores in Hong Kong. It also owns the US supermarket group Kings Super Markets. Current and Future Developments In July 2004, Marks and Spencer became the subject of a   9. 1bn takeover bid by the billionaire retailer Philip Green.