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Imagine you own a food truck that sells gourmet vegan tacos. You rely on many suppliers, all of which also supply their goods to your
Imagine you own a food truck that sells gourmet vegan tacos. You rely on many suppliers, all of which also supply their goods to your competitors (other food trucks in the area). For some items, like paper plates and napkins, you have several suppliers. For other items, like extra-firm tofu, you rely on a single supplier. What is an industry analysis most likely to suggest?
- A.The power of suppliers is relatively high for some items and relatively low for others. You should find other suppliers of extra-firm tofu so that you have a more diverse supply.
- B.The power of suppliers is high overall, because you have so many of them. You need to consolidate to fewer suppliers, so you have more bargaining power.
- C.The power of suppliers is relatively low, since you work with so many of them. However, you should have your tofu supplier also supply your paper plates and napkins so that you have a more diverse supply of these paper products
- D.None of the above
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