An industrial tool manufacturer relies on a distributor network with the largest online outlet and store network aimed at construction workers. The distributor network is seeking a manufacturer to provide them with private label products. They've decided they will offer only their own product line and not any other brand in this category of industrial tools. Now the industrial tool company must decide whether to agree to this proposition or lose this company as a customer. This is an example of which of the competitive forces at play in this industry?a. Industry competitive structureb. Rivalry among established companiesc. Bargaining power of suppliersd. Bargaining power of buyers

Respuesta :

Answer:

d. Bargaining power of buyers              

Explanation:

           Five Forces Industry Analysis given by Porter is a tool which is used to analyze competition for a business. According to Porter, the bargaining power of the buyer defines the pressure that any consumers or any customers put on the business to provide power prices, better quality product and increase competitions. A buyer can make an organization more competitive.

          In the context, the distributor asks the manufacturing company to provide with private label to the distributor but the company decided to offer their brand only and not any other brand under their production line. Here the distributor forces the company to be  more competitive otherwise the manufacturing company might loose the distributor as their customer.

Hence this shows the buyers bargaining power.

Thus the correct option is (d).