In the case of downstream, different strategies are available to leverage power and these include lock in strategy, B2B advertising, branding management and pricing strategy.
Lock in strategy occurs when the size is dominant and the firm has moved first into the market. It is a self-reinforcing commitment to retain the position captured over the period. A good example is to issue proprietary industry standard like Apple. The company has launched its iOS and devices that operate in that operating system (Zhau et al., 2008). As a result, buyers who are interested can purchase only from them directly. This is likely to reduce the options available for the buyers.
B2B advertising is a better technique that is often ignored by the firms. When large number of suppliers are present, one can complement the other in different services. For instance, one can focus on integration while the other on cost cutting and the other on market requirements. This enhances the supplier power and eliminates the possible barriers that can evolve during the entry. For instance, IBM service campaign enables cross platform usage and collaborates with other suppliers to fulfil the demands.
Branding management is a niche area where successful brands like Microsoft have played vital roles. It is essential for the supplier brand to reinforce on values and position the brand with better personality that can help maintain brand loyalty. As buyer percentage increases, the brand loyalty increases to fulfil the demands. For instance, Microsoft initially launched its applications like Word and Excel separately. With the response received from the buyers, it has understood that the provision of Microsoft Windows Suite can help its buyers to avail the benefits in bulk.
The final strategy to influence power is pricing strategy. Price is a factor that makes the buyers to analyse the values of the brand (Zhao et al., 2008). When it offers premium pricing to a product that is not worth, it is misusing the buying power. However, price penetration based on market demands can increase brand performance as well as customer loyalty. Price skimming is a suitable technique that can add value and power to the supplier.