Supplier power has increased because of the Internet for all of the following reasons EXCEPT:
A) the growth of new Web-based businesses has created more outlets for suppliers to sell to
B) some suppliers have created Web-based purchasing systems that encourage switching
C) the process of disintermediation makes it possible for some suppliers to reach end users directly
D) software that links buyers to a supplier's website has created rapid, low-cost order capabilities

Question

Quizplus · Accepted Answer

Several factors contribute to stronger supplier power. First, Web-based business may create more downstream outlets for suppliers to sell to. Second, Web-based purchasing arrangements make purchasing easier and discourage customers from switching. Online procurement systems directly link suppliers and customers, reducing transaction costs and paperwork. Third, the use of proprietary software that links buyers to a supplier website may create a rapid, low-cost ordering capability that discourages the buyer from seeking other sources of supply. Finally, suppliers will have greater power to the extent that they can reach end users directly without intermediaries.

Supplier Power Has Increased Because of the Internet for All