Which of the following is most likely to exert the bargaining power of a buyer? A. The world's largest discount store Wal-Mart seeks vendors to supply products made exclusively for its stores. B. Cowgirl Creamery, a small cheese producer, seeks a dairy farm for its organic milk supplies. C. Ground beef producers seek to purchase cattle from ranchers. D. Barnes and Noble purchases books from publishers for sale in its online stores.

Question

Business

Hezekiah Arnold

5 July, 22:40

Which of the following is most likely to exert the bargaining power of a buyer? A. The world's largest discount store Wal-Mart seeks vendors to supply products made exclusively for its stores. B. Cowgirl Creamery, a small cheese producer, seeks a dairy farm for its organic milk supplies. C. Ground beef producers seek to purchase cattle from ranchers. D. Barnes and Noble purchases books from publishers for sale in its online stores.

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Answers (1)

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Camron Delacruz · Answer 1

A. The world's largest discount store Wal-Mart seeks vendors to supply products made exclusively for its stores.

Explanation:

Taking into consideration the bargaining power of a buyer in the Porter's Five Forces model, here it is evident that Wal-Mart is the only example of a strong, omnipresent buyer that can surely dictate the terms of the offer. Every vendor would want to sell their produce to Wal-Mart, due to their wide customer base and presence of numerous stores.