According to Michael Porter, there are five determinants of competition. An example of _____ is when a buyer purchases a large fraction of an industry's output and can demand price concessions.
A) threat of entry
B) rivalry between existing competitors
C) pressure from substitute products
D) bargaining power of buyers
E) bargaining power of suppliers

Question

Quizplus · Accepted Answer

The correct answer is D) bargaining power of buyers. This determinant of competition refers to the ability of buyers to affect the price and terms of purchase, which is particularly strong when buyers purchase large volumes and can demand concessions.

According to Michael Porter, There Are Five Determinants of Competition