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The country's largest landscape company, brightview, a $2 billion firm, is the result of a merger between two multi-state firms, brickman group and valleycrest, in 2015. the company is operating in a fragmented industry dominated by small, local businesses. which of the following identifies a relevant competitive force and a way the company might leverage it? a. bargaining power of buyers: brightview can expect customers to purchase from them because of brand loyalty. b. risk of entry by potential competitors: brightview may be able to lessen the impact of this force in a low-barrier industry through economies of scale, specifically discounts on bulk purchases of raw material inputs. c. bargaining power of suppliers: brightview will have difficulty leaving the landscape industry because of its investment in this merger and the cost of all of the landscape equipment included among both companies' assets. d. complementors: brightview will need to collaborate with other companies to develop outdoor products because there are not enough complementary products in the marketplace to make homeowners value their landscaping.

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jepessoa

Answer:

B) risk of entry by potential competitors: brightview may be able to lessen the impact of this force in a low-barrier industry through economies of scale, specifically discounts on bulk purchases of raw material inputs.

Explanation:

Brightview has a lot of small competitors since the entry barriers are almost non-existent. But since the company has a great bargaining power as a buyer of raw materials, supplies, equipment, etc., they can use their lower costs as an advantage.

For example, a local landscaper probably buys a truckload of decorating rocks once a year. Instead Brightview probably purchases truckloads of decorating rocks every single week. Obviously Brightview is buying very large quantities that allows them to negotiate a lower price with their vendors. The same repeats for every single material, tools, equipment, etc.  

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