In general, suppliers have greater power in the distribution channel than supermarket chains.

Question

Quizplus · Accepted Answer

Generally, supermarket chains have greater power in the distribution channel than suppliers. Supermarkets have the ability to dictate terms, prices, and quantities to suppliers due to their larger size and purchasing power. They can easily switch to another supplier if they are not satisfied with the terms offered. On the other hand, suppliers may be dependent on large supermarket chains for a significant portion of their sales, giving supermarkets the upper hand in negotiations.

In General, Suppliers Have Greater Power in the Distribution Channel