Unilever
Bargaining power of buyers (High)
1. Switching cost is a strong force but in case
of unilever the cost of switching is low which
means its customers can easily switch to other
brands or competitors brand with slightly
difference in preference.
2. Online data availability have made
customers strong and well informed. Through
easy excess of information the customers can
compare the product features and attributes to
other can make a decision of switching from
one to another brand. This relationship of low
switching cost and high quality information
which is a strong force is effecting the unilever
consumer base
3.The smaller lot of consumers buying
products from unilever have a very minimal
impact on their profits and financial position
because the smaller lot of buyers have a weak
force on financials impacts of unilever
compared to their vast customer data base.
Nestle
Bargaining power of buyers (High)
1. Buyers of Nestle have a enormous choices to
switch to other brands or competitors brand
due to low switching cost but users of Nestle
have very influential choices and they show a
loyalty towards the Nestle products because of
their quality products and maintenance.
2. Nestle understands the need of its buyers and
how well they can cater those need in terms of
quality of products and how well they can
satisfied those needs. Nestle is always
concerned about the quality of its products and
health of its consumers which is making their
consumers loyal to their brand in terms of
brand loyalty.
3. Nestle is concerned about the health of its
buyers which it always shows in its Nestle
health and wellness programs as showing
concern about the society health consciousness
as a whole.