Asked by Dominique Handy on Apr 29, 2024
Verified
Your business manufactures motors. Based on prices and shipping, you only have one business as an option to buy bearings. This means there is high _________.
A) buyer power
B) supplier power
C) threat of new entrants
D) threat of substitutes
Supplier Power
The influence that suppliers may have over a company, often due to the scarcity of their product or the lack of alternative suppliers.
Bearings
Machinery components used to reduce friction between moving parts and support rotational or sliding movements.
Motors
Machines that convert electrical energy into mechanical energy, typically used for powering devices, vehicles, or machinery.
- Comprehend the influence of supplier and buyer power within industry competition.
Verified Answer
VS
Valeria SangradorApr 30, 2024
Final Answer :
B
Explanation :
Having only one option for purchasing bearings indicates a situation where the supplier has significant control over terms and prices, which is a clear example of high supplier power.
Learning Objectives
- Comprehend the influence of supplier and buyer power within industry competition.