Which of the following companies would have the LEAST bargaining power with its suppliers?

a. a company whose products are highly popular and easily available across most supermarkets

b. a company that is involved in mass production of goods to cater to its expanding customer base

c. a company that actively caters to a broad price-sensitive customer base

d. a company that offers high-cost specialized products that could be used only by customers of a certain age group

e. a company that generates high-quality product components from easily available raw materials for a broad customer base

Question

Business

Nolan Mayer

14 December, 16:27

Which of the following companies would have the LEAST bargaining power with its suppliers?

a. a company whose products are highly popular and easily available across most supermarkets

b. a company that is involved in mass production of goods to cater to its expanding customer base

c. a company that actively caters to a broad price-sensitive customer base

d. a company that offers high-cost specialized products that could be used only by customers of a certain age group

e. a company that generates high-quality product components from easily available raw materials for a broad customer base

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Answers (1)

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Salvador Hartman · Answer 1

d. A company that offers high-cost specialized products that could be used only by customers of a certain age group

Explanation:

Such a company would have a relatively low-volume production, which would not provide much incentive for a potential supplier to lower its prices.

All the other businesses have high production volumes, so potential suppliers can shave their margins a little and still make acceptable profits.