Please briefly (25-50 words) describe (in your own words) the “competitive force
ID: 388286 • Letter: P
Question
Please briefly (25-50 words) describe (in your own words) the “competitive force” associated with the first letter of your last name (listed below)
Please consider an organization in the field of “Oil and Gas” in which you worked in the past (or are currently working or with which you are familiar), then please discuss and provide (50-100 words) an example of the “competitive force” associated with the first letter of your last name (listed below) for that organization.
A-D: Buyer Bargaining Power
Explanation / Answer
Buyer bargaining power refers to the competitive force in that market that shows the ability of the buyers or consumers to influence the decisions of the firms, related to quality, price and other dimensions of the products & services, offered to the consumers. A good buyer bargaining power, will bring lower price and higher quality to be delivered to the buyers. It happens when there are many alternatives with higher homogeneity in the products on offer such as agricultural products.
Exxon Mobil is the top and one of the largest oil and gas company that operates not only in the USA, but also in different parts of the world. The company produces petroleum and petro-chemical products that are essentially used by the consumers. Since, oil and gas products have relatively inelastic demand in the market as consumers use these products and heavily rely upon it. It means that there is a poor degree of bargaining power associated with the buyer and it is the Exxon Mobil that holds strong bargaining power with its wide range of the existing product portfolio, ownership of wells in different parts of the world and research & development labs owned by Exxon Mobil. It makes them the organization who can offer differentiated products and win over the consumers, provided a good quality is offered, complemented by reputation earned by environmental friendly drives taken up by Exxon Mobil.