Carbon Automotive manufactures engines for different cars. The company supplies its products to leading car manufacturers in Europe and America. Which of the following statements indicates that Carbon has high bargaining power?
A)Carbon has only four customers and all of them are large companies.
B)Carbon's customers do not expect differentiation in its engines from one vehicle to another.
C)The selling point of many cars is that they contain Carbon engines.
D)The automobile industry in the U.S. is characterized by low levels of competition.

Question

Quizplus · Accepted Answer

The statement that the selling point of many cars is that they contain Carbon engines indicates high bargaining power for Carbon Automotive. This suggests that Carbon's engines are a key differentiator for the cars, making the company an important and possibly irreplaceable supplier to its customers.

Carbon Automotive Manufactures Engines for Different Cars