You want to open your own restaurant. You know you will be able to purchase foods from many different distributors. You have evaluated the _________ in Porter's competitive forces model.
A) Bargaining power of customers
B) Bargaining power of suppliers
C) Rivalry among existing firms in the industry
D) Threat of entry of new competitors
E) Threat of substitute products or services

Question

Quizplus · Accepted Answer

Evaluating the bargaining power of suppliers is important when opening a restaurant because food and supplies are essential to the business. By assessing the power of suppliers, the restaurant owner can determine if they will be able to negotiate favorable prices and terms with their distributors.

You Want to Open Your Own Restaurant