Asked by Isaiah P. Lewis on Sep 24, 2024
Verified
Supplier power tends to be low when
A) The supplier provides non-critical inputs
B) The supplier provides homogenous inputs
C) Both A&B
D) None of the above
Non-Critical Inputs
Components or materials that are not essential to the core function or operation of a product or process.
Homogenous Inputs
Inputs or resources that are identical in quality and nature, making them interchangeable in production processes.
Supplier Power
The influence that suppliers may exert on businesses and markets by controlling the pricing and quality of their goods or services.
- Acknowledge the role that supplier and buyer forces play in shaping a firm's strategic options.
- Master approaches for handling the dominance of suppliers and lessening their effects.
Verified Answer
BC
Brianna Curtis5 days ago
Final Answer :
C
Explanation :
When the supplier provides non-critical inputs and homogenous inputs, it is easier for the firm to switch to another supplier, reducing the supplier's bargaining power. Therefore, both options A and B contribute to low supplier power.
Learning Objectives
- Acknowledge the role that supplier and buyer forces play in shaping a firm's strategic options.
- Master approaches for handling the dominance of suppliers and lessening their effects.