One of the five competitive forces is the power of customers to affect pricing and reduce profit margins.

Question

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According to Michael Porter's Five Forces model, the bargaining power of customers is one of the key factors that can affect pricing and profit margins of a company. The higher the bargaining power of customers, the more likely they are to demand lower prices or better terms, which can lower a company's profits.

One of the Five Competitive Forces Is the Power of Customers