The bargaining power of iRobot's cu

The bargaining power of iRobot's customers is high. In 2010, iRobot derived 38.4% of total revenue, directly or indirectly, from the US federal government.[2] Since iRobot must compete for government contracts with other companies,
the US federal government has a large amount of bargaining power when it comes to contract price,
length, terms and provisions. Any reduction in the amount of revenue derived from government contracts without an offsetting increase in new sales to other customers would adversely affect iRobot's operating results.
iRobot's traditional non-contract customers also have a high degree of bargaining power. These customers have many options including traditional manual upright vacuums and other competing robotic vacuums.