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| Topic: |
Business
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| Number of pages / Number of words: |
7 / 1818 |
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The switching cost is very low. Therefore, the customers can move from one dealer to another easily without bearing any significant cost. Typical used cars customers are less specific about make, model, than new car buyers.
The power of suppliers
The power of suppliers is low in this industry. The main suppliers are the used car auctions, individuals and the cars leasing companies...
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The main suppliers are the used car auctions, individuals and the cars leasing companies. The availability of a large number of high quality off-lease vehicles created an oversupply of used cars and thus lower prices of these vehicles and increased the demand of used cars. The switching cost is low since the car dealer can change the suppliers easily...
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