Which Porter's force covers the bargaining power of customers?

• A. Bargaining power of customers
• B. Competitive rivalry
• C. Bargaining power of suppliers
• D. Threat of substitute products

Answer: (A)

Bargaining power of buyers refers to how much customers can influence prices and terms of purchase. This is one of Porter's Five Forces and explains why buyers might push for lower prices or better service if they have strong leverage (for example, few buyers relative to sellers, high price sensitivity, or many substitutes). The other forces describe different dynamics: competitive rivalry looks at how fiercely firms compete with each other, bargaining power of suppliers covers suppliers’ ability to raise prices or constrain terms, and threat of substitutes is the risk that alternatives could lure customers away. So the force that specifically covers the bargaining power of customers is the bargaining power of buyers.