Answer to Question #178763 in Economics for Lutendo

Question

Celine is the buyer for a large national chain of suppliers she's tasked with negotiating contracts with well known brands to ensure they have the products that competitors will stock .

Questions

1) which industry will Celine be working with?

2) carry out porter's five forces analysis from the perspective of the supermarket chain.

a) who will have the greater bargaining power : celine's organisation or the supplier?

b) how high is the threat of substitution in this market?

c) how high is the threat of new entrants?

3) how could Celine estimate the probable fixed and variable costs for the supplier's she works with ?

Thank you

Answer 1

1) Celine be working with monopolistically competitive industry.

2)

a) Supplier will have the greater bargaining power.

b) The threat of substitution is high in this market.

c) The threat of new entrants is comparatively low.

3) The probable fixed costs will be high and variable costs will be low for the supplier's she works with.