When an Industry Member Is a Major Customer of the Supplier

question 97

Multiple Choice

When an industry member is a major customer of the supplier, and the relationship (partnership) is unusually effective and mutually advantageous

• A) it is rare for such partnerships to have much competitive impact on those industry members not having such partnerships.
• B) one unfortunate outcome is that it tends to give the supply partners much enhanced bargaining power in their dealings with these industry members.
• C) there is a strong likelihood such partnerships will put increased competitive pressure on those industry members who lack productive collaborative relationships with their suppliers.
• D) there is a high likelihood of such partnerships reducing competitive pressures on ALL industry members, provided technological change in the suppliers' business is rapid and the item being supplied is a commodity.
• E) the usual result is to reduce competitive pressures on all industry members, provided the costs of the items furnished by supply chain partners amount to 50 percent or more of total cost.

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