A group of shoe manufacturing firms purchases raw materials collectively from a single supplier to obtain better deals. This is an example of obtaining competitive advantage by ________.

Question

Quizplus · Accepted Answer

By establishing an alliance and collectively purchasing raw materials, the firms can obtain better deals and reduce their costs, giving them a competitive advantage. This is a form of cooperation between firms in the industry to increase their bargaining power with suppliers.

A Group of Shoe Manufacturing Firms Purchases Raw Materials Collectively