Asked by Aliana RamireZ on Sep 24, 2024
Verified
Supplier power tends to be low when
A) Suppliers are less concentrated
B) Inputs provided by the supplier are not vital
C) Inputs are homogenous
D) All the above
Less Concentrated
Refers to an industry or market where power and resources are spread out among many competitors, reducing the level of competition.
Vital Inputs
Crucial resources or components required for the production process or for providing a service.
Homogenous Inputs
Inputs or resources used in production that are of the same kind and interchangeable, contributing to uniformity in the manufacturing process.
- Comprehend how the influence of suppliers and buyers affects strategic choices within a company.
- Understand methods for mitigating the power of suppliers and diminishing their influence.
Verified Answer
WH
whatsyour HasHtagabout 17 hours ago
Final Answer :
D
Explanation :
When suppliers are less concentrated, it means there are more options for the buyer to choose from, which reduces the supplier's power. When inputs provided by the supplier are not vital, it means the buyer can easily switch to another supplier, which decreases the supplier's power. When inputs are homogenous, it means that the buyer can easily find a substitute for the inputs, which again lowers the supplier's power. Therefore, all three factors contribute to a low supplier power, making choice D the correct one.
Learning Objectives
- Comprehend how the influence of suppliers and buyers affects strategic choices within a company.
- Understand methods for mitigating the power of suppliers and diminishing their influence.