ii. Bargaining power of buyers:
Buyer power relies on several varied factors. The retail market of UK is a business place where indefinite suppliers meet a limitless demand. This facts gives huge power to customers because they can move quickly to another company if they are not satisfied with Next Plc. The Next Plc’s target group has essentially huge power of earning because of their increasing income, advanced technical education and age group. Therefore their spending patterns must be watched closely to determine the altering demands and purchasing trends (Cozens, 2000).
iii. Bargaining power of suppliers:
The less valued and less skill nature of manufacturing of clothing means that the labor costs are a high proportion of the business making it very critical for UK to rival with less labor cost countries in North Africa, Asia and Eastern Europe. For instance, the adults in Jakarta were being paid 7700 rupees a day while children between 10 and 15 years of age get 4500 rupees for ten hours (Milne, 1999). This is the reason why several companies decide to source more from outside. Entire sales of retail are expected to attain £30.37 billion by 2004 and during similar time period the manufacturers of UK sales are expected to reduce by 29% to £4.17 billion. This trend brings Next Plc under pressure because it is not possible to generate high quality products at these costs. On the other hand the company has several powers and can dictate the norms because the poor countries doing the work has urgent requirement of money.