Explain the market force of "bargaining power of suppliers," as detailed by Porter's Five Forces model, with
an example.
What will be an ideal response?
Powerful suppliers (such as companies with controlling interests in vital resources necessary for production) can
reduce profitability by charging more for their products and services. For example, 70 percent of the world's
low-cost lithium (required for lithium-ion batteries in -hybrid and electric automobiles) comes from a salt flat in
Chile's Atacama Desert, controlled by Soquimich, based in Santiago, Chile, and Rockwood Holdings, based in
Princeton, New Jersey. One means of countering supplier power is by locating substitutes for scarce supplies. For
example, Toyota is conducting research in magnesium-sulfate batteries as a replacement for lithium-ion
technology.
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OXO's mission is "to create innovative consumer products that make everyday living easier." Is this a market-oriented mission statement?
A. Yes B. No
Command economies provide a more favorable environment for innovation and entrepreneurs than market economies
Indicate whether the statement is true or false.