He is discussing Bargaining Power of Buyers competitive force.
What do you understand by leverage?
The employment of various financial instruments or borrowed cash, or leverage, is an investing strategy that aims to improve an investment's potential return. The level of debt a company utilizes to finance its assets is another definition of leverage.
It offers a range of funding options so that the company can reach its desired earnings. Leverage is a crucial investing strategy because it enables businesses to establish a ceiling for the growth of their operations.
Leverage can be used, for instance, to support financially a new business. Purchasing fixed assets or borrowing money in the form of a loan from another business or person can serve as examples of leverage.
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