Question

Which of the following is not a reason that industry rivals are often motivated to enter into strategic partnerships with key suppliers?

a) To enhance the quality of parts and components being supplied and/or to reduce defect rates

b) To speed the availability of next-generation components

c) To reduce the bargaining power they face from buyers of their products

d) To squeeze out important cost savings for both themselves and their suppliers

Answer 1

c) To reduce the bargaining power they face from buyers of their products

The option that does not explain why industry rivals would enter strategic partnerships with suppliers is to reduce bargaining power against buyers, as partnerships are usually formed to enhance quality, speed up component availability, and gain cost savings.

Step-by-step explanation:

The option that is not a reason why industry rivals might enter into strategic partnerships with key suppliers is to reduce the bargaining power they face from buyers of their products. This option actually reflects a reason for a company to engage in actions that enhance its own market power against buyers, rather than the typical motivations for forming strategic partnerships with suppliers. Companies usually enter into such partnerships for mutual advantages like enhancing the quality of parts and components (option a), speeding up the availability of next-generation components (option b), and achieving important cost savings for both parties (option d). These partnerships facilitate economies of scale, strengthen industry positions against competitors, and may even lead to joint lobbying efforts to influence governmental policies that benefit the entire industry.