Enterprises that occupy intermediate positions in supply chains frequently have limited bargaining power with suppliers and customers. What are the consequences and what can they do about it? [Hint: they can try to choose the buyers and suppliers they will deal with (see Porter (1980). Work through their options.]
What will be an ideal response?
The main reasons for lack of bargaining power are the existence of many, equivalent value-adders,
allied to a lack of distinctive capabilities or lack of scale relative to the scale of the up-stream and
down-stream enterprises in the chain. Consequently, enterprises in these situations have to accept the
terms and conditions of trade they receive, notably to accept external control of the output prices
they can charge and the input prices they must pay.
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a. True b. False Indicate whether the statement is true or false
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Answer the following statement true (T) or false (F)
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Answer the following statement true (T) or false (F)