Apple's Dominance of Smartphone and Tablet Markets Has Allowed the Firm

question 19

Multiple Choice

Apple's dominance of smartphone and tablet markets has allowed the firm to lock up 60 percent of the world's supply of advanced touch-screen displays, and to do so with better pricing than would be available to smaller rivals. This is an example of:

• A) network externalities that make Apple valuable.
• B) high switching costs for suppliers.
• C) a complex tech product establishing itself as a killer brand.
• D) a growing firm gaining bargaining power with its suppliers.
• E) low search costs associated with a famous brand.

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Definitions:

Supply Partnerships

Collaborative agreements between companies and their suppliers aimed at optimizing costs, quality, and supply chain efficiency.

Natural Resources

Materials or substances occurring in nature which can be exploited for economic gain, such as minerals, forests, water, and fertile land.

Organizational Buying Behavior

The decision-making process and actions involved when organizations purchase products or services for their own use or for resale.