Question

Who has more supplier power? Suppliers for an organic pizzeria

store or a regular one? Please offer 2 reasons to state why.

Answer 1

Regular pizzeria stores have more supplier power than organic pizzeria stores due to the larger availability of suppliers and better pricing power.

Step-by-step explanation:

The regular pizzeria store would have more supplier power compared to the organic pizzeria store. Here are two reasons why:

1. Availability of suppliers: Regular pizzeria stores have a larger pool of suppliers to choose from as they can source ingredients from a wide range of conventional suppliers. On the other hand, organic pizzeria stores may have limited options and would need to rely on a smaller network of organic suppliers.
2. Pricing power: Regular pizzerias can negotiate better prices with their suppliers due to the larger demand and higher sales volume. This gives them more bargaining power compared to organic pizzerias, which may have to pay premium prices for organic ingredients, reducing their ability to negotiate favorable terms with suppliers.