Bargaining power means the power of replacement; exchange. Bargaining is the act of to exchange, fraudulently or not one object for another; is the strength of a person or group to discuss prices, putting pressure and demanding, for example, higher quality at a lower price.
Bargain comes from the English word bargain, which represents the verb to bargain in Portuguese.
In a figurative sense, bargaining can be synonymous with cheating, because it can represent a fraudulent transaction.
Bargain Power according to Porter
Bargaining power makes up two of the factors in Michael Porter's Five Forces model, which is aimed at to analyze the competition between companies, and to develop a business strategy efficient.
The bargaining power of buyers is one of Porter's five strengths, it is the bargaining power of customers with companies in the sector. This competitive strength has to do with the decision-making power of buyers on product attributes, especially regarding price and quality.
The other factor is the bargaining power of customers, which is when customers demand more quality for a lower price of goods and services, this factor also competes with the industry, forcing prices down and pitting competitors against each other. others.
See the meaning of The 5 forces of Porter.
