Asked by hannah mazzeo on Jul 17, 2024
Verified
Supplier power is high when
A) Suppliers are concentrated
B) The inputs provided are critical
C) The inputs provided are unsubstitutable
D) All of the above
Critical Inputs
Essential resources or components required for a production process or operational function.
Unsubstitutable
Describes a good or service that cannot be replaced or substituted by another due to its unique characteristics or the specific needs it meets.
Supplier Power
The influence a supplier has over the price and availability of its products, affecting the market competitiveness.
- Grasp the effect that the power of suppliers and buyers has on the strategic planning of a firm.
Verified Answer
DS
David SiedomaJul 23, 2024
Final Answer :
D
Explanation :
All of the above (A, B, and C) contribute to supplier power. When suppliers are concentrated, they have more control over pricing and supply. If the inputs they provide are critical, they hold more bargaining power because the buyer cannot operate without them. Additionally, if the inputs provided are unsubstitutable, the buyer has limited options and must comply with the supplier's demands.
Learning Objectives
- Grasp the effect that the power of suppliers and buyers has on the strategic planning of a firm.