An industrial tool manufacturer relies on a distributor network with the largest online outlet and store network aimed at construction workers. The distributor network is seeking a manufacturer to provide them with private label products. They've decided they will offer only their own product line and not any other brand in this category of industrial tools. Now the industrial tool company must decide whether to agree to this proposition or lose this company as a customer. This is an example of which of the competitive forces at play in this industry?

a. Industry competitive structure

b. Rivalry among established companies

c. Bargaining power of suppliers

d. Bargaining power of buyers

Question

Social Studies

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2 May, 08:02

An industrial tool manufacturer relies on a distributor network with the largest online outlet and store network aimed at construction workers. The distributor network is seeking a manufacturer to provide them with private label products. They've decided they will offer only their own product line and not any other brand in this category of industrial tools. Now the industrial tool company must decide whether to agree to this proposition or lose this company as a customer. This is an example of which of the competitive forces at play in this industry?

a. Industry competitive structure

b. Rivalry among established companies

c. Bargaining power of suppliers

d. Bargaining power of buyers

+1

Answers (1)

Know the Answer?

Marcelo Novak · Answer 1

Option C

Explanation:

According to the case given in the question, the competitive force as seen from the Porter's Five Forces Industry Analysis Structure, is the Supplier's bargaining force.

This competitive force in the industry is the perfect representation of the haggling intensity of purchasers and alludes to the weight providers can put on organizations by raising their costs, bringing down their quality, or lessening the accessibility of their items.