Question

Last semester Hop Dog was the only food truck on campus. This semester four other trucks have located on the quad, offering a variety of lunchtime options and daily deals. Which of Porter's five forces has the LEAST impact on the Hop Dog truck?

Answer 1

Answer:

Bargaining power of suppliers

Explanation:

Porter's Five Forces was a tool developed by Michael Porter in 1979. Michael Porter was a professor at the Harvard Business School.

This tool is, since then, used as an important framework to analyze the competition level in the market.

The five forces that are developed by Porter are:

1. Threat of new entrants
2. Bargaining power of suppliers
3. Bargaining power of buyers
4. Threat of substitute products
5. Rivalry among existing competitors

In the given case, the least impact of locating four other trucks of Hop Dog in the quad is the bargaining power of suppliers.

The Bargaining power of suppliers is the force according to which suppliers analyze its power and control to the possibility of raising their prices and lowering the quality of the product.

In the given case, Hop Dog's four more trucks are located in the quad and the supplier power had the least effect on it because the competition of the supplier in the area was nil which might have given Hop Dog's suppliers to raise their prices and low their quality product and still earn profit.

So, the correct answer is suppliers power of the bargaining power of suppliers.