When the bargaining power of suppliers and buyers is high, companies in the industry will_____________ .
A) find it more difficult to be profitable
B) most likely use a growth strategy
C) divest themselves of all of their cash cows
D) engage in organizational restructuring
E) not own any stars

Question

Quizplus · Accepted Answer

Under these conditions both customers and suppliers will have strong influence over pricing, and companies in this industry will experience the squeeze on their profit margins.

When the Bargaining Power of Suppliers and Buyers Is High