BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Saturated with alternative products or services
|
|
|
Using information technology to gain a competitive advantage
|
|
|
More attractive to enter
|
|
|
None of the above
|
Detailed explanation-1: -Suppliers have the power to influence price, as well as the availability of resources/inputs. Suppliers are most powerful when companies are dependent on them and cannot switch to other suppliers because of higher costs or lack of alternative sources.
Detailed explanation-2: -Supplier Power: the ability of suppliers to drive up the prices of your inputs and raw materials. Buyer Power: the strength of your customers to drive down your prices.
Detailed explanation-3: -The following conditions indicate that a supplier group is powerful: It is dominated by a small number of companies and is more concentrated than the industry to which it sells. It is not required to contend with substitute products for sale in the industry. The industry is not one of the supplier’s important customers.
Detailed explanation-4: -Usually, the number of suppliers of a particular resource greatly determine supplier power. For example, if a firm needs steel to produce their product, and there is only one seller of steel in the market, then the steel company has a strong supplier power.