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write their own views (Francis Buttle, 1996). Data from one source may be different from another source; this may cause confusion to the organizations who are dealing with relationship marketing. For relationship marketing in UK retail sector, statistics play an important role in defining various things. If unauthorized data is collected from sources then the total system may be affected (Philip Kotler and Gray Armstrong, 2005). Hence, while collecting secondary data organizations must be careful. Organizations or users should check the copyrights, authorization of data and time span of data.

3.4. Porters five force model

Portal five force model is an easy and dominant tool for understanding the power location in an industry position. This tool is very much useful in understanding asset of both current and future position of an organization. This tool helps in finding the position of new products whether it makes profit or not. It is also used to determine the fault of an organization and can rectify their mistake in order to make good profits. The five forces which determine the strength of an organization are as follows (strategic Management, 2007):

1. Supplier Power

2. Buyer Power

3. Competitive Rivalry

4. Threat of New Entry

5. Threat of Substitution

Supplier Power

By using the supplier power it is easy to analyze how simple for a supplier to hike prices of their products. This mainly depends on number of suppliers for the product, their potency and control of consumer and the cost of controlling from one to another. If the number of suppliers is less the demand that product is more and in such a situation a supplier can increase the price depending on the demand for that product and vice versa. A good relation between supplier and consumer is maintained only when the cost of the product is within the expectations of consumer (Mind tools, 2009).

Buyer power

Buyer power shows more impact on an organization. When the power of buyer is strong then the relationship between industry and consumer will be consumer dominant. In such a case customer sets the price of the product. There will be a little uncertainty in relation. In order to avoid this uncertainty consumer must set a reasonable price for the product so that a good relationship will be maintained between them (WordIQ, 2009).

Competitive Rivalry

This mainly depends on the number and capacity of supplier. If more than one supplier gives same offers which makes customer more attractive, in such a situation customer will probably have more power than the supplier. This rivalry among the suppliers helps in maintaining good relationship between consumer and supplier because of the attractive offers provided by the supplier on their goods (Strategic Management, 2007).

Threat of New Entry

It is not only the competition among the current suppliers but also there is an op本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。