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Chapter 5

Strategic Management

Plz explain last para of Q.8


Rifhat Khan

Rifhat Khan

CA Inter

β˜… 28K+

05-Jul-23 16:44


Answers (2)

By the Facts of the case Baby turtle is a company which manf washable diapers and not many companies willing to manf. as mentioned the core material used in it is used in many other products manufacturing in are several supliers for a material that too it has many uses in several industries, so out of those suppliers baby turtle chooses a single famous supplier that entire source material req for its production is purchased from him and he is famous and moreover the supplier product is crucia to baby turtle so he can exercise bargaining power which works in short run as he is charging less comparitively like other supplier generally to make habituat to its product .in long run Baby turtle may shift to other supplier once it grow grows bigger as mentined he is exercising switching cost as it's product is testing stage) and that other supplier may provide the material for little cost since there are many suppliers as it's uses are wide and has no substitutes for that core product ,so baby turtle can defend itself from that presure I hope.u understood..if not u are free to ask...this is according to my understanding an sorry if I can't put as right

prasad B

prasad B

CA Inter

β˜… 3K+

05-Jul-23 23:32

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