The Power of Buyers in the Publishing Industry

In: Business and Management

Submitted By cappy2354
Words 507
Pages 3
Over the last twenty years and with all the changes in technology, buyers bargaining power has increased greatly. With the emergence of companies like and online stores like Half Price (where you can buy school books or any book) university book stores and big chain stores now have to compete buy price. Stores like Barnes & Noble have to compete buy price because now-a-days all you have to do is do a Google search of whatever book you what to buy and the search will come up with thousands of hits of people wanting to sell you that book. Also with devices like the kindle, and iPad, readers can buy eBooks and download them rite to that device for a discounted price. Stores that have already adopted the new way of buying and reading books such as Amazon will survive a downfall in actual published books because there philosophy has always been online and competitive. Barnes & Noble over the last few years has started to do more on-line sales and they specialize in sales of eBooks for the Nook, which Barnes & Noble came up with to compete with other e-readers.
There are two types of buyer power. The first is related to the customer’s price sensitivity. If each brand of a product is similar to all the others, then the buyer will base the purchase decision mainly on price. This will increase the competitive rivalry, resulting in lower prices, and lower profitability.
The other type of buyer power relates to negotiating power. Larger buyers like Barnes & Noble tend to have more leverage with the firm, and can negotiate lower prices. When there are many small buyers of a product, all other things remaining equal, the company supplying the product will have higher prices and higher margins. If a company sells to a few large buyers, those buyers will have significant leverage to negotiate better pricing.
Some factors affecting buyer power…...

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