Question

Qwik process inc. Is a company that supplies microprocessors to nuevono inc., a computer hardware company. When nuevono inc. Demands lower prices for the microprocessors, qwik process inc. Makes it clear that it would profit more from launching its own brand of laptops and desktops in the market. Fearing the competition it would then face from qwik process inc., nuevono inc. Decides to buy the microprocessors at the quoted price itself. In this scenario, qwik process inc., as a supplier, has exercised its bargaining power by threatening to

Answer 1

The strategy adopted by the Qwik Process Inc. is called Forward Integration.

Forward Integration is a business strategy that involves the direct distribution of the product or service to the final client.

It is also known as the vertical integration. It eliminates the layer between the two parties in a supply chain distribution.

An accurate example of Forward Integration is when a farmer sells its crops at a local grocery store, rather than to a distribution center. Thus eliminating the distribution center layer from the supply chain hierarchy.

This strategy is very useful if the middle layer is creating problems for any side in the chain.

Answer 2

Answer: Forward integrate.

Step-by-step explanation: Forward integration is a strategy in which the companies directly take over the supply channels by producing and distributing the goods on their own. This is mainly done to achieve a greater market share and achieve economies of scale. Here, when qwik process inc. makes it clear that it would launch its own brand of laptops and desktops in the market and increase competition for nuevono inc. it is exercising its strategy of forward integration. Instead of supplying microprocessors to nuevono inc. it is directly producing laptops and desktops to cater the market.