As a seller, you may often encounter a situation like this: your customers gather and discuss the product they want to buy and one day they come to you and form a group, bargaining. As a result, you have to offer them discounts and other benefits. Harvard economist Michael Porter formalized this idea, called “buyer power,” in 1979. “Buyer power” is separate from the competition that you face and you should be careful to distinguish the two. Even if you face little competition, if your buyers are powerful then you are in trouble. Read our article to find out a solution.
Strategy expert Rita Gunther McGrath says that the days of sustainable competitive advantage are long gone. Instead, companies should focus on transient competitive advantages. In 1979, the high priest of management thinking Michael Porter laid out the building blocks of the idea of competitive advantage in a seminal Harvard Business Review article titled ‘How Competitive Forces Shape […]