Tiffany has worked in the restaurant industry since graduating from cooking school and has decided to open her own restaurant. Like most restaurants, she will have a variety of beverages to offer customers but was surprised by the proposals from Pepsi and Coca-Cola, which were quite high. Due to the high costs associated with offering a brand name soda, Tiffany's profits on carbonated beverages will be reduced. Which of Porter's competitive forces does this exemplify?

Question

Quizplus · Accepted Answer

Supplier power is exemplified in this scenario because the high proposals from Pepsi and Coca-Cola, which are suppliers of carbonated beverages, can dictate the cost, thereby affecting Tiffany's profits. This shows that the suppliers have significant influence over the restaurant's offerings and profitability.

Tiffany Has Worked in the Restaurant Industry Since Graduating from Cooking