The Relative Bargaining Power of Suppliers Is High When

question 47

Multiple Choice

The relative bargaining power of suppliers is high when

• A) suppliers provide products that are differentiated.
• B) incumbent firms face low supplier switching costs.
• C) incumbent firms can credibly threaten to backward integrate into the industry.
• D) suppliers depend heavily on the industry for a large portion of their revenues.

---

Definitions:

Customer Order Cycle

The total amount of time it takes from the moment a customer places an order until the product is delivered, including processing, production, and shipping.

Replenishment Cycle

The process and frequency with which inventory is reordered and restocked to maintain sufficient levels.

Order Arrival

The process or moment when a customer's order reaches the seller or when inventory is received by a company from suppliers.

Retail Sale

The selling of goods and services directly to the consumer for personal use, not for resale.