If critical inputs are in jeopardy or prices of those inputs are extraordinarily high,companies may pursue vertical integration strategies or develop collaborative relationships to reduce the:
A) rivalry among existing firms.
B) bargaining power of buyers.
C) threat of substitute products.
D) bargaining power of suppliers.

Question

If critical inputs are in jeopardy or prices of those inputs are extraordinarily high,companies may pursue vertical integration strategies or develop collaborative relationships to reduce the:
A) rivalry among existing firms.
B) bargaining power of buyers.
C) threat of substitute products.
D) bargaining power of suppliers.

Quizplus · Accepted Answer

When critical inputs are in jeopardy or prices of those inputs are extraordinarily high, companies can pursue vertical integration strategies or develop collaborative relationships to reduce the bargaining power of suppliers. By integrating with suppliers or forming collaborative relationships, companies can ensure a stable supply of inputs and negotiate better prices, which reduces the bargaining power of suppliers. This can help companies maintain their competitiveness in the market.

If Critical Inputs Are in Jeopardy or Prices of Those