Customer Quote by Victor Cheng
““If customers are more concentrated, then the customers can demand (and get) big price discounts. If suppliers (the client’s company and its competitors) are more concentrated, then the vendors in the industry have the power to set high prices, and customers have no choice but to buy at those prices.””
About This Quote
Source Book: Case Interview Secrets, Victor Cheng, 2012
Market concentration shifts bargaining power; many customers force discounts, few suppliers raise prices.
In simple terms: Concentration changes who can set prices.
Key Takeaway
Assess market structure before pricing.
Themes
economics
strategy
pricing
Mood
analytical
cautious
Type
business
strategic
When to use this quote
- Business negotiations
- pricing strategy
- supplier selection
Key Concepts
Market power
bargaining dynamics
Questions to Reflect On
- How does concentration affect long‑term market health?
- What safeguards can protect customers?
A Different Perspective
Concentration can also limit innovation and choice.
