Asked by Sandhu Luvjit on Jun 24, 2024
Verified
Supplier power is _________ when buyers have few choices from whom to buy and _________ when buyers have many choices.
A) high; high
B) high; low
C) low; high
D) low; low
Supplier Power
An assessment of how much power a supplier has over the prices and terms of supply, affecting the buying company's costs and strategies.
Buyers
Individuals or entities that purchase goods or services for personal use, resale, or business use.
Choices
Choices refer to the act of selecting between two or more possibilities and are fundamental to decision-making processes in both personal and professional contexts.
- Grasp the dynamics of supplier and buyer power in industry competition.
Verified Answer
SN
Shina NguyenJun 29, 2024
Final Answer :
B
Explanation :
Supplier power is high when buyers have few choices (because suppliers can exert more influence on terms and prices), and low when buyers have many choices (because buyers can easily switch to another supplier if they are not satisfied).
Learning Objectives
- Grasp the dynamics of supplier and buyer power in industry competition.