Sample Essay

The bargaining power of buyers or consumers is the power of users of the products to influence the decisions of the manufacturers. The ratio of buyers and sellers in the Light Emitting Diode industry is quite balanced and the buyers would be able to affect the manufacturers as they would have an array of suppliers for Light Emitting Diodes.

The quality and price would be of importance to the buyers as Light Emitting Diodes are used as vital components in many electronic items such as cellular phones, computers and televisions. If there are low cost alternatives available in the industry then the buyer would influence Electro-Light to decrease prices. If the company has large customers who buy Light Emitting Diodes in large quantities they would also influence the pricing process.

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