Asked by Tessa Eddington on Jun 01, 2024

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​Supplier power tends to be low when

A) ​The supplier provides critical inputs
B) The supplier provides homogenous inputs
C) Both A&B
D) ​None of the above

Supplier Power

The ability of providers of goods or services to drive up prices and dictate terms because of their importance or scarcity.

Critical Inputs

Essential resources or factors required in the production process or for the delivery of a service that significantly impact the quality and output of the final product.

Homogenous Inputs

Inputs or resources used in production that are uniform in nature and interchangeable, contributing to consistent product quality.

  • Understand the impact of supplier and buyer power on a firm’s strategic decisions.
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ZK
Zybrea KnightJun 04, 2024
Final Answer :
B
Explanation :
Supplier power tends to be low when the inputs they provide are homogenous, meaning they can be easily replaced or sourced from multiple suppliers, reducing the supplier's leverage.