Final answer:
Suppliers are key players in the category management process, enabling retailers to provide products to consumers by engaging in global markets and affecting market competition through their product offerings and pricing decisions. Technological advancements and globalization have increased competition and allowed suppliers to reach new markets.
Step-by-step explanation:
In the category management process, suppliers play a critical role as they are responsible for producing and providing goods and services that retailers then sell to consumers. With the major shifts towards technology and globalization, suppliers are now able to extend their reach beyond local markets, tapping into the global marketplace through business-to-business websites. This has significantly increased competition among suppliers, as well as between retailers.
Moreover, suppliers contribute to the dynamics of market competition as they must decide on the quantity of goods to offer at different price points, taking into account production costs and demand. This decision-making influences market prices and availability, affecting consumer choices. Suppliers also impact the economy by employing workers, which in turn affects the demand for goods due to the change in workers' incomes.