A Segment Is Unattractive If the Company's Suppliers Are Able

question 114

Multiple Choice

A segment is unattractive if the company's suppliers are able to raise prices or reduce quantity supplied. Which of the following is the best illustration of the threat of suppliers' growing bargaining power?

• A) Sears unsuccessfully attempted to compete with Walmart and Kmart.
• B) Oil companies must purchase a significant amount of their product from OPEC.
• C) Walmart has almost no competitors in its market space.
• D) The U.S. Post Office has merged package operations with FedEx.
• E) McDonald's is the largest fast food franchise and is still growing.

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