a sector, companies work in two types of markets, the factor markets
(in which companies buy raw material, componenets, financial resources
and manual labour) and the product markets (in which they sell their
services to clients like distributors, consumers or other manufacturers).
product markets, there are two factors that influence the strength
of a company's power of negotiation infront of their clients:
of the buyers with price
cost of the component over the total cost (for example, drinks companies)
grade of differentiation of the product.
intensity of the competition amongst buyers (for example, the car
importance they give to the quality of a product.
factors influence the buyer's power of negotiation with regards to
size and concentration of the buyers in respect to the suppliers.
possibility of vertical integration