Bargaining power is the ability of the customer of the firm to influence the prices of the offerings it sells and suppliers to set the prices the firm pays for raw materials and services that it buys. A product that has a less number of substitutes or an industry where there are fewer players enhances the bargaining power of the product or companies that are operating in the category.

As per the Vietnam Import Data, Vietnamese customers are more knowledgeable in terms of selecting the products or deciding the price, so entities that want to import their products in Vietnam should take into account the quality of the product and services.

The competitiveness of the firm selling the product in the international acumen can be understood with the help of a well-known framework developed by Prof. Michael Porter of Harvard University.

1. Buyers Bargaining Power: From the point of view of enterprise it includes buyer selection, switching costs, differentiation, and entry barriers.

2. Suppliers Bargaining Power: From the viewpoint of enterprise, includes a selection of the supplier, switching costs, quality monitoring.

3. Potential New Entrants: Provide entry barriers, switching costs, economies of scale, differentiation, access to varied distribution channels.

4. Substitutes: Market access, cost-effectiveness, and distribution.

5. Segmentation, Targeting, and Positioning: Before entering any new market say Mexico, it is essential to conduct adequate R&D analysis to track the profitable consumer segment and target group. Positioning is the space that a product occupies in the minds of the target audience. As per the Mexico Import Data, Mexican customers exhibit robust brand loyalty, and powerful brands from the USA, Europe, and Canada continue to dominate their niche. Creating a captivating and alluring brand can be a key to conquering the Mexican market. Understanding the Mexican culture is equally important both on the consumer and business levels.

6. Value Proposition: Analyzing the market and then deciding on its marketing techniques, programs, and terms of products is important. The value proposition is the functional benefit that the consumer derives from the product. The quantum of product differentiation and value-added services enhances bargaining power.

7. Promotion Mix: Developing an effective promotion mix to communicate the value proposition of the product also enhances the bargaining power.

8. Just in Time Delivery: A product fetches a premium price when delivered in time to the target audience.

9. Brand Equity and Loyalty: Brand is the reputation of a company and loyalty comes from past experiences of consumers with a product or company.

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Exim Bank Estimates, Goods Exports May Reach $ 87.2 Billion In The First Quarter