Buyer Dominance is defined as the buyer power that may or may not be negotiated with the supplier price provided for the goods. For instance, in the case of the Tesco Plc., the leading UK retailer vs Food processor, the Tesco Plc. is identified to be a buyer and the food processor is defined to be a supplier. The Tesco Plc. has many suppliers. And due to the leading position, the company has dominating power and because of this, the negotiation may or may not be made with the food processor for the goods (Kotabe and Mol, 2006).
The supplier dominance is defined as the supplier power that may or may not negotiate with the buyer who is depending on the needs of the buyers. For example, in the case of the intel, the company produce and supply microprocessor for computer and mobile. It is considered as the leading brand of processor. The company “intel” enjoy the dominating power in the industry. In addition, the computer companies which use intel processor have to agree with the terms and condition of intel.
The power and interdependence are usually deemed as the important concept to understand the relationship between the buyers and suppliers. In power interdependence, both the parties have dominance power in negotiation and the parties are interdependent with each other. For example, there are two leading beverage companies Starbucks and PepsiCo partnered for bottling, distributing and selling their popular brand product Frappuccino. Here both the partners are completely interdependent with each other (Krajewski, Ritzman and Malhotra, 2007).
The power independence is when both the buyer and supplier have enjoyed equal and minimum bargaining power in the business transaction. For example, the 3d printers’ retailers and the consumers enjoy equal power. Hence, they are independent in this transaction.
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