A segment is unattractive if the company's suppliers are able to raise prices or reduce quantity supplied.Which of the following is the best illustration of the threat of suppliers' growing bargaining power
A) Wal-Mart has almost no competitors in its marketspace.
B) Oil companies must purchase a significant amount of their product from OPEC.
C) McDonald's is the largest fast-food franchise and is still growing.
D) The U.S. Post Office has merged package operations with FedEx.
E) Sears unsuccessfully attempted to compete with Wal-Mart and Kmart.

Question

Quizplus · Accepted Answer

The fact that oil companies must purchase a significant amount of their product from OPEC indicates a dependence on a few key suppliers, giving these suppliers increased bargaining power to raise prices or reduce quantity supplied. This illustrates the threat of suppliers' growing bargaining power. Options A, C, D, and E do not pertain to suppliers' bargaining power.

A Segment Is Unattractive If the Company's Suppliers Are Able