Poder Negociador De Los Compradores

1.3.2. Bargaining power of buyers

If the buyers are powerful it means among other things that the customers are highly concentrated and buy a high volume regarding to the total sales of the sector. According to our business this does not fit as we have to deal with many, small buyers. A single buyer does not have a high impact on us as they always buy small amounts of food/drinks. Due to this, they are not able to dictate terms to us. Furthermore, the buyers do not have complete information. They are able to see the different prices of the bars/restaurant within Calle 93 but they do not know anything about the quality of the food and beverages. However this fact can change if customers are going regularly to restaurants within this particular street. One factor that could indicate power of buyers is the low costs of switching from our products to those ones of a competitor. As there are many restaurants/bars directly located next to each other, the customers can easily change their minds and go to another bar if they do not like our service, prices or something. Nevertheless, we have to emphasize that we are the first restaurant in Bogotá offering Spanish Pintxos which makes us kind of unique. Thus the buyer has to pay the given price if he wants to enjoy these dishes as there is no other Pintxo bar in Bogotá.

As a conclusion it can be said that the buyers do not have the power to pressure us or our competitors to decrease prices or increase qualities of products. The pressure becomes more relevant regarding the competitive rivalry as we will see in 2.2.5.

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