Question

An industrial tool manufacturer relies on a particular distributor network. This distributor network has the largest online outlet and store network, and its product lines are aimed at construction workers. The distributor network is seeking a manufacturer to provide it with private label products, as it has decided to offer only its own product line in this category of industrial tools. Now, the industrial tool company must decide whether to agree to this proposition or lose this network as a customer. This is an example of which of the competitive forces at play in this industry?
a. Industry competitive structure
b. Rivalry among established companies
c. Bargaining power of suppliers
d. Bargaining power of buyers

Answer 1

Answer:

d. Bargaining power of buyers

Explanation:

The porter five forces are as follows:

1. The rivalry among competitors deals with the strength and weaknesses of the competitors in order for the company to plan accordingly.  

2.The supplier's bargaining power stated that the price change of the product made by the supplier's offer plus the customer is attracted to the product because the product is unique and has an impact on the overall profit.

3.The purchaser's bargaining power deals with the number of purchasers and how many orders a single purchaser places.

4. The threats posed by new entrants affect the overall position of the company where the competitor enters the market.

5. The threat of substitution is an alternative method of producing goods and services that can also have a direct influence on your position and on productivity.

As the given situation focuses on the customers network that reflects the bargaining power of buyers.