Scenario B: Use the information in the following paragraph to answer the questio

Question

Scenario B: Use the information in the following paragraph to answer the questions that follow. You and a fellow investor are investigating the possibility of starting a new casino in Los Angeles. It has been your lifelong dream. You have won a lottery and are trying to decide if this is what you want to do with your prize money. You decide to do an analysis of the competitive environment. After your analysis, you discover several important issues. First, it will cost most of your lottery winnings to finance a casino in Los Angeles. Second, it will be difficult to attract new customers because they have so many choices available to them in Los Angeles and the surrounding small towns. Finally, the competition in the casino industry is considered "fierce" by industry analysts, and this is frightening to someone who has never worked in the casino industry. The availability of so many choices to the customers in Los Angeles and the surrounding small towns in the +casino industry is an indication of the Chigh pricing power of suppliers. high bargaining power of customers. high bargaining power of suppliers.

Explanation / Answer

Answer

* High bargaining power of customers

Because there are several choices available, customer can opt for the casino who provide less cost. And to attract more customers casinos have to compete in terms of reducing costs and providing more quality.

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