Introduction
Consumer power means how influential buyers are in the market and whether they can demand lower prices. Comprehensive buyers are a particularly powerful force in the market. Due to the industry’s profitability, they confront sellers with each other, provoke lower prices, demand higher quality products, or provide more services. Identifying the chief buyers for the sale of products is the most significant strategic decision.
Analysis of Consumer Market Power
This ability determines the influence of consumers on the quality of the product and its cost. Buyers have a greater influence of control when the audience is limited and there are many sellers. Moreover, it is easy for buyers to move from one seller to another. Since such changes in the broad masses do not occur immediately, they can be predicted. A company needs to foresee all situations in which customers can change their point of view or go to competitors (Porter, 1998). In today’s world, this can be achieved with the aid of statistics and available information about the desires of buyers and competitors’ competition strategies.
My Application to Strategy
I serve five clients who import goods from China to Cebu. The level of consumer influence on the company increases if each of the five consumers practices logistics services on an industrial scale. Therefore, the business needs to observe competitors’ proposals in the market and offer favorable terms of cooperation to buyers (Porter, 1998). Thus, having five customers who produce different types of goods, it is essential to provide high-quality logistics support for each of them. As Dynamic Transport Logistics Solutions Inc has customers from different industries, accordingly, in case of a crisis in one branch, the firm will receive a favorable client from another. Hence, the firm must offer scarce services in the market, encouraging more customers to cooperate at higher prices due to the lack of analogs of services.
Conclusion
Thus, it is possible to immediately anticipate customer demands and evaluate competitors in the market, enabling firms to adapt to market requirements. Dynamic Transport Logistics Solutions Inc. can maintain its current service price if it offers scarce assistance. At the same time, logistics orders received from various industries provide the company’s profits in the event of a crisis. These components will permit the business to encourage consumers to receive firms’ aid.
Reference
Porter, M. E. (1998). Competitive strategy: Techniques for analyzing industries and competitors: with a new introduction Michael E. Porter. The Free Press.