Which of these strategies is effective when the number of suppliers is small and the number of competitors is large?
A)Conglomerate diversification
B)Forward integration
C)Concentric diversification
D)Horizontal diversification
E)Backward integration

Question

Quizplus · Accepted Answer

When the number of suppliers is small and the number of competitors is large, backward integration is an effective strategy as it involves acquiring or controlling the suppliers of raw materials or components, thereby reducing the dependence on them and gaining more control over the supply chain. This can lead to cost savings and increased efficiency, which can help the company compete better against a large number of competitors.

Which of These Strategies Is Effective When the Number of Suppliers