Increased scope and presence of buyer power reduces the chances of collusion between the companies which are working in the banking sector. It allows the development of larger competitive forces within the working of the management of the organization. As such there is a greater possibility that larger set of buyer power reduces the chances for collusion among rivals and works to improve the competitive strength within the organization .
Larger set of buyers working to create a pressure on the banking players makes it clear that these companies would not be able to join forces for exerting collusive powers. The collusive tendencies are likely to wane reduce in the presence of strong buyer power which makes it necessary for the banking players to have the need for proper management of their operations to clearly allow the growth of better competition. This form of better competitive forces is likely to become necessary among market players who have to deal with strong attention to the needs of the buyers. A market characterized by strong buyer power ensures that consumers are able to clearly dictate terms and rules of engagement of the market players. Additionally it places premium and importance on the need to innovate for the purpose of differentiation with the industry rivals. As companies attempt to continuously win the consumers, the superior buyer power exerts tremendous hold and pressure upon them to clearly provide better services and programs. This kind of tendencies pushes the level and terms of engagement of the competitive forces (Fuertes & Heffernan, 2009).
It has been seen that as companies enter into collusion with one another, the buyer power provides a counter-balance which breaks such kind of hold over the market. As the market continues to react to the presence of superior buyer power, the necessity to have reduced level of collusion gets clearer. As collusion brings along higher costs of services and inefficiency, buyer power desists such form of collusion and clearly develops the competition rate of growth (Fuertes & Heffernan, 2009).