The Bargaining Power of a Customer Is Weak If ________

question 106

Multiple Choice

The bargaining power of a customer is weak if ________.

• A) the availability of a substitute is limited
• B) the cost of switching to a substitute is low
• C) competitors offer products with same benefits at lower prices
• D) new entrants are offering a product that uses more recent technology

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Definitions:

Available-For-Sale

A classification used in accounting for financial assets, denoting securities that a company plans to sell but not immediately or in the near term.

Vertically Integrated

A strategy where a company expands its operations into different stages of production within the same industry, from raw materials to finished products.

Horizontally Growth

Expansion strategy whereby a company grows by acquiring or merging with firms in the same industry at the same level of the supply chain.

Synergies

The additional value created by the combination of two or more companies, parts, or processes to achieve greater performance as a whole than the sum of their individual parts.