In terms of competitive forces, powerful buyers exist when

A) there are many buyers.
B) the product represents a small share of the buyer's total costs.
C) switching costs are low.
D) the product is critical to the buyer.
E) preemptive practices exist.

Competitive Forces

The various external pressures and challenges that companies face in the market, including competition from rival firms, potential new entrants, substitute products, bargaining power of buyers, and bargaining power of suppliers.

Powerful Buyers

Buyers who have significant influence over suppliers due to their large volume of purchases, affecting terms and pricing in their favor.

Switching Costs

The costs that a consumer incurs as a result of changing brands, suppliers, or products, which can include financial costs, time, and effort.