, MNP3703 ASSIGNMENT 2 DUE 7 SEP
QUESTION 1
The IMP supplier interaction model teachers that it is important to consider the
environment where the environment where the interaction between a buyer
and a supplier will take place. One aspect to consider is the level of
concentration of buyers and suppliers in the market.
Explain how the level of concentration of buyers and suppliers in the
telecommunication market impacts the interaction between Eskom and MTN,
considering the critical reliance of MTN on its electricity supply?
In the telecommunication market, the level of concentration of buyers and
suppliers can have a significant impact on the interaction between Eskom and
MTN, especially considering the critical reliance of MTN on its electricity supply.
If there is a high level of concentration of buyers and suppliers in the
telecommunication market, it means that there are fewer options available for
both Eskom and MTN. This can lead to a situation where MTN has limited
alternative suppliers to turn to for electricity supply in case of any issues with
Eskom. Consequently, Eskom may have more power in terms of negotiation and
pricing, as they know that MTN heavily relies on them for electricity.
On the other hand, if there is a low level of concentration of both buyers and
suppliers in the telecommunication market, it means that there are more
options available for both parties. In this scenario, MTN could potentially have
multiple suppliers to choose from for its electricity supply, giving them more
leverage in negotiations with Eskom. Eskom, in turn, may need to be more
competitive in terms of pricing and service to retain MTN as a customer.
QUESTION 1
The IMP supplier interaction model teachers that it is important to consider the
environment where the environment where the interaction between a buyer
and a supplier will take place. One aspect to consider is the level of
concentration of buyers and suppliers in the market.
Explain how the level of concentration of buyers and suppliers in the
telecommunication market impacts the interaction between Eskom and MTN,
considering the critical reliance of MTN on its electricity supply?
In the telecommunication market, the level of concentration of buyers and
suppliers can have a significant impact on the interaction between Eskom and
MTN, especially considering the critical reliance of MTN on its electricity supply.
If there is a high level of concentration of buyers and suppliers in the
telecommunication market, it means that there are fewer options available for
both Eskom and MTN. This can lead to a situation where MTN has limited
alternative suppliers to turn to for electricity supply in case of any issues with
Eskom. Consequently, Eskom may have more power in terms of negotiation and
pricing, as they know that MTN heavily relies on them for electricity.
On the other hand, if there is a low level of concentration of both buyers and
suppliers in the telecommunication market, it means that there are more
options available for both parties. In this scenario, MTN could potentially have
multiple suppliers to choose from for its electricity supply, giving them more
leverage in negotiations with Eskom. Eskom, in turn, may need to be more
competitive in terms of pricing and service to retain MTN as a customer.
