In what scenario would buyers have a higher bargaining power?

Buyers have higher bargaining power in scenarios where they buy in bulk. This is primarily due to the fact that bulk purchases represent a significant volume of sales for suppliers. When buyers commit to large quantities, they can leverage this volume to negotiate more favorable terms, such as lower prices or better conditions. Suppliers are often more willing to make concessions to secure large orders, as these sales can have a meaningful impact on their revenue.

In contrast, making small individual purchases typically does not grant buyers much influence over pricing or conditions, as individual transactions are less critical for suppliers. The presence of many competitors can drive prices down but does not inherently increase a single buyer's negotiating power unless they are also purchasing in large quantities. Lastly, a lack of alternatives generally decreases buyer power, as it leaves them dependent on a single supplier, reducing their ability to negotiate effectively.