Asked by Jacob Spreng on Sep 24, 2024
Verified
To decrease supplier power,the firm can
A) Increase rivalry among its suppliers
B) Buy from multiple suppliers
C) Both A&B
D) None of the above
Decrease Supplier Power
Involves strategies or actions taken by purchasing companies to reduce the influence and control of their suppliers over prices, terms, and supply.
Rivalry Among Suppliers
A competitive situation where suppliers in the same market vie for business by offering better terms, prices, or quality.
Multiple Suppliers
A business strategy involving the use of more than one supplier to reduce reliance on any single provider and mitigate risks.
- Acquire techniques for controlling supplier authority and reducing the impact of suppliers.
Verified Answer
MK
Mallory Kreidler2 days ago
Final Answer :
C
Explanation :
Buying from multiple suppliers can decrease a firm's supplier power because the firm can play suppliers off against each other and negotiate lower prices. Increasing rivalry among suppliers can also decrease supplier power because the competition among suppliers will force them to offer better prices, quality, and service to the firm. Therefore, both options can help a firm decrease supplier power.
Learning Objectives
- Acquire techniques for controlling supplier authority and reducing the impact of suppliers.