Zimway is a small manufacturer of linen. Couture Smart, a big apparel brand buys linen from Zimway in large quantities. Zimway, otherwise, has very few clients and most of them buy linen occasionally and in minimal quantities. Therefore, Couture Smart is crucial for Zimway's survival and success. Which of the following concepts is illustrated in the scenario?

Question

Quizplus · Accepted Answer

The scenario illustrates buyer dependency, which occurs when a company depends on a single or small group of buyers for a significant portion of their revenue and success. Zimway's situation shows that Couture Smart is crucial for their survival and success, making them dependent on this buyer.

Zimway Is a Small Manufacturer of Linen