What can hinder the competitive pressures from individual buyers?

Study for the Lululemon Strategy Exam. Access engaging materials and detailed explanations to prepare for your test. Elevate your strategy skills and be exam ready!

The correct choice highlights that when individual buyers possess limited purchasing power, their ability to exert competitive pressure is diminished. In the context of competitive strategy, purchasing power refers to the influence buyers have on market prices and terms. If individual buyers cannot spend significantly or if they represent a smaller market segment, they are less likely to negotiate better prices or demand higher quality products from companies. This situation can reduce the intensity of competition because companies do not feel the same pressure to cater to consumers' demands as they would in a market where buyers have substantial spending power.

Limited purchasing power also means that buyers are less likely to switch between brands or to hold multiple companies accountable for offering better deals, further hindering their competitive influence in the market. Consequently, businesses may focus less on meeting the needs of these buyers, allowing them to maintain higher profit margins and less competitive pricing dynamics.

Other factors, such as the availability of many brands or high demand for fitness apparel, can create competitive pressures in various ways, but they do not directly relate to minimizing the pressures exerted by buyers. These considerations usually encourage competition rather than alleviate it.

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