A company's chosen strategy is the route it uses to arrive its destination. A guiding set of principles for laying out the long-term goals is known as Porter's Five Forces. Which of the following best represents the bargaining power of a carrot farmer as a supplier?
A) A carrot farmer gives first choice of their organic crops to the customer who pay their bills fastest.
B) A carrot farmer notices that the farm next door has started to grow and sell beets.
C) A carrot farmer's customers have the option to purchase from a new company that delivers in half the time.
D) The new owner of a carrot farm has decided to switch from carrots to growing and selling tomatoes.

Question

Quizplus · Accepted Answer

This question requires that familiarity with Porter's Five Forces. Choice A is correct in that it represents the bargaining power of suppliers. A carrot farmer giving first choice to certain customers means that they hold the power to decide who receives preferential crops. The other three choices are either other elements of Porter's Five Forces or not examples of the bargaining power of suppliers identified in the framework.

A Company's Chosen Strategy Is the Route It Uses to Arrive