Certification in Supplier Diversity Practice Exam

Which of the following impacts the competitive landscape of supply chain management?

1. Market saturation

2. Buyer-supplier negotiations

3. Price-fixing and group boycotts

4. Customer preferences

The correct answer is: Price-fixing and group boycotts

The correct answer highlights the impact that price-fixing and group boycotts can have on the competitive landscape of supply chain management. Price-fixing, an illegal practice where companies agree on prices rather than allowing them to be determined by open market competition, distorts market dynamics. It can lead to higher prices for consumers and reduced competition among suppliers, meaning that supply chain strategies need to adapt to navigate these constraints effectively. Group boycotts, wherein businesses agree to refuse to purchase from or do business with a particular supplier or group of suppliers, can significantly impact supply chains by limiting the options available for sourcing materials or products. This collective behavior can shift the power dynamics within the market and lead to strategic shifts in how companies engage with their supply chains, seeking alternative suppliers or changing their sourcing tactics entirely. While market saturation, buyer-supplier negotiations, and customer preferences certainly influence supply chain management as well, the specific illegal nature of price-fixing and group boycotts introduces a level of risk and complexity that can disrupt existing competitive landscapes more dramatically than the other options listed.