Question

exami written questions 1. in competitive environment buyer power & supplier power play important role. discuss. 2. explain the concept of financing within the resource based framework as an important or new venture finance.

Explanation:

1. Question 1:

Buyer power is the ability of customers to drive down prices, demand better quality/service, or push competitors against each other, while supplier power is the leverage suppliers have to raise input costs or restrict supply. Within the resource-based view (RBV), a firm's unique, valuable, rare, non-substitutable resources (like proprietary manufacturing tech or exclusive supplier contracts) can mitigate these forces. For example, Apple has exclusive long-term deals with chipmakers for custom A-series silicon, reducing supplier power, and its loyal customer base and unique ecosystem lowers buyer power, as customers are less likely to switch for lower prices.

1. Question 2:

Financing is the process of securing funds to fund business operations, capital expenditures, or growth initiatives. New venture finance specifically refers to funding for early-stage startups that lack operating history or proven revenue streams. A real-life example is Airbnb's early seed funding from Y Combinator in 2009, which allowed the company to scale its platform beyond its initial launch, followed by venture capital rounds that funded global expansion.

Answer:

1. Buyer and supplier power shape competitive dynamics. A firm's RBV resources reduce these pressures, as seen with Apple's exclusive supplier contracts and loyal customer ecosystem limiting supplier and buyer power respectively.
2. Financing is securing business capital. New venture finance funds early-stage startups, exemplified by Airbnb's Y Combinator seed funding that enabled its initial growth and global scaling.