Marta wants to open a shop specializing in gourmet candies and is having a difficult time finding space to rent in a location where many potential customers will pass by each day. The profitability that Marta is facing as she starts her business is suppliers with bargaining power. Option B
Generally, Due to the fact that there are only two feasible sites that match Marta's specifications, plus the fact that various other sorts of companies are competing to rent each space, the rents are quite costly. This suggests that there are a large number of businesses but a limited number of landlords.
Therefore, the right answer is choice b: suppliers in a position to negotiate.
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CQ
Marta wants to open a shop specializing in gourmet candies and is having a difficult time finding space to rent in a location where many potential customers will pass by each day. There are only two possible locations that meet Marta's criteria, and several other types of businesses are vying to rent each location. This leads to high rents. What challenge to profitability is Marta facing as she starts her business?
customers with bargaining power
suppliers with bargaining power
the threat of potential entrants
the threat of competition from existing competitors
