All companies in this industry use raw fruits and vegetables to create their products. These big canning companies have contracts with farmers to purchase the supplies needed for canning. If the companies want to change suppliers they will have to either not renew the contract with the farmers or break the contract. The companies can also build their own farms and grow the fruits and vegetables needed. The bargaining power of buyers in the canning industry is influenced by many factors. There are millions of buyers relative to the handful of firms in this industry. The buyers have no switching costs. The buyers only need to pick up a different brand. The buyers can also decide to grow their very own fruit and vegetables. The buyers can even can their own fruits and vegetables so they will be able to store them. A lot of buyers do not see any difference between the brands and usually choose the
All companies in this industry use raw fruits and vegetables to create their products. These big canning companies have contracts with farmers to purchase the supplies needed for canning. If the companies want to change suppliers they will have to either not renew the contract with the farmers or break the contract. The companies can also build their own farms and grow the fruits and vegetables needed. The bargaining power of buyers in the canning industry is influenced by many factors. There are millions of buyers relative to the handful of firms in this industry. The buyers have no switching costs. The buyers only need to pick up a different brand. The buyers can also decide to grow their very own fruit and vegetables. The buyers can even can their own fruits and vegetables so they will be able to store them. A lot of buyers do not see any difference between the brands and usually choose the