Willoughby Inc.,a large chain of superstores,sources its products from thousands of suppliers who have limited product differentiation.The products stored at the superstores are also available at smaller convenience stores with a marginal price differentiation.In this case,which of the following competitive forces is most likely to be a threat to the company?
A) threat of substitutions
B) bargaining power of suppliers
C) threat of new entrants
D) bargaining power of customers

Question

Quizplus · Accepted Answer

The bargaining power of customers is most likely to be a threat to Willoughby Inc. because the products they sell are widely available and have little differentiation, allowing customers to easily switch to other stores if they find better prices or services, thus giving customers more power over the company.