An increase in the bargaining power of suppliers _____ of a target industry.
A) increases both the attractiveness and the profitability
B) decreases both the attractiveness and the profitability
C) decreases the attractiveness and increases the profitability
D) increases the attractiveness and decreases the profitability

Question

Quizplus · Accepted Answer

An increase in the bargaining power of suppliers means that they have more control over the prices of their inputs, which can lead to higher costs for the target industry. This reduces the profitability of the industry and also reduces its attractiveness as it becomes less profitable to operate in this market. Therefore, option B is the correct answer.

An Increase in the Bargaining Power of Suppliers _____ of a Target