Marketing - Bargaining Power of Customers

Bargaining power customers

SCA has two levels of target audience. [pic 1]

• Bargaining power of Customers – Low

• The main reason for low bargaining power of customers is that they receive the value from SCA in terms of revenue without incurring the cost
• SCA has a tie up with these customers who are responsible to conducting the sports camps and SCA acts like a facilitator
• The customers, therefore, have no reason of not opting to be a part of the association proposed by SCA
• In the end, both of them share the revenue on a certain proportion and end up in a win-win situation

• Bargaining Power of Consumers – Medium

• There are a few competitors such as NSW Sports Camps etc. who provide a similar platform of conducting sports camps
• Consumers have an option of choosing from amongst these players
• The success of these players in a given situation depends on the availability and service delivery in that situation
• As such, Consumers bargaining power is neither high nor low because there’s value transfer is equal on both the fronts: For SCA – getting a strong foothold in the market and for consumers – getting a good exposure to the sport in a very short time

• Threat of Substitutes – Low

• There is no direct substitute for SCA rather indirect substitutes because there is a difference in the core value proposition of SCA and these indirect substitutes
• Indirect substitutes that can affect SCA business are other recreational activities and mini workshops in the market such as Music workshops and other recreational activities such as theme parks and mini vacation and indulgence in games and related activities
• The threat is low because there is a significant difference in the value proposition provided. The SCA value proposition is providing quality exposure to a particular in a short amount of time whereas the value proposition of others is leisure. SCA provides a platform for conducting camps that involve physical endurance and the other activities aren’t much related to physical endurance.