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Global Forces and the Advertising Industry Solved

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If the bargaining power of the buyers is changed, then the supplier should change their cost structure. In the advertising industry, the customer is the external stakeholders. The customer’s bargaining power, their individual behavior, and their preference if changes then the supplier should change their marketing strategy. The suppliers that are companies should develop a marketing strategy to improve their products because in the advertisement industry, the customers can attract only by the good advertisement and by the products of the company. The company should select a marketing strategy that reflects the cost structure of the advertisement. If the bargaining power of the customer increases then, the company should decrease their price in order to increase their profitability. The sales volume of the company is also increasing due to the increasing bargaining power of the buyer. In the advertising industry, all mainly depends on the bargaining power of the buyer. According to their preferences, their needs and desires, the suppliers implement their products. If the customers will shift to one product to another, then the company should identify the proper reasons for shifting one product to another.

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