What best explains Gruper Home Appliances, Inc.'s low bargaining power with X-Mart?

Gruper Home Appliances, Inc. experiences low bargaining power with X-Mart primarily because sales are concentrated with a large volume buyer. When a single buyer, like X-Mart, purchases a substantial amount of products from a supplier, this buyer can exert significant influence over the terms of the purchase, negotiating lower prices or more favorable conditions.

In this situation, Gruper is likely reliant on X-Mart for a large portion of its sales. This dependence limits Gruper's ability to negotiate since losing the relationship with a major buyer could severely impact its revenue. The dynamics of this relationship create an imbalance in power, showing that large volume buyers can dictate more favorable terms, thereby diminishing the supplier’s bargaining position.

Other factors, such as the availability of substitutes for the product, the costs faced by suppliers, or brand loyalty among customers, do not directly impact the bargaining power of Gruper in this particular context as significantly as the concentration of sales with a large buyer. Each of these factors plays a role in the broader market dynamics but does not specifically highlight the core reason for Gruper's low bargaining power with X-Mart.