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The existence of high exit barriers such as ownership of specialized assets such as tower cranes for building very large crude oil carriers in the shipbuilding industry indicates thatSelect one:a. buyers are relatively weak because of the high switching costs created by tower cranesb. the competitive rivalry in the industry is severe.c. the economic segment of the external environment has shifted, but shipbuilders’ strategies have not changed.d. the industry is moving toward differentiation of shipbuilding process.

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Answer:

a. Buyers are relatively weak because of the high switching costs created by tower cranes .

Explanation:

Buyers have lower bargaining power because of higher switching costs.

Bargaining power is a scope of the ability of buyers to influence another. It is an important issue in negotiation because buyers with higher bargaining power are able to conditionate their circumstances to obtain more profitable agreements with others.

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