Final answer:
Companies with high supplier dependence may find that their suppliers exhibit opportunistic behavior, taking advantage of the relationship to charge more for goods and services.
Step-by-step explanation:
Companies with high supplier dependence may find that their suppliers exhibit opportunistic behavior, taking advantage of the relationship to charge more for the goods and services they provide. When suppliers have significant power in a relationship, they may choose to exploit this power by raising prices, reducing quality, or delaying delivery to extract higher profits.
A real-world example of this can be seen in the gasoline market. If a messenger company depends heavily on gasoline for its delivery services and the price of gasoline increases, it can have a significant impact on the company's costs and profitability. The company may be forced to pay higher prices for gasoline, leading to increased costs and reduced profits.
In summary, high supplier dependence can lead to opportunistic behavior where suppliers take advantage of their power in the relationship to charge more for goods and services. This can negatively impact the profitability of companies and potentially disrupt their operations.