When organizations consider whether there are upcoming price increases in the products purchased by the industry, this issue refers to the ________ of the Porter five forces model.
A) bargaining power of buyers
B) threat of potential entrants
C) threat of substitute products
D) bargaining power of suppliers
E) None of the answer choices is correct.

Question

Quizplus · Accepted Answer

The bargaining power of suppliers refers to the influence that suppliers have over the price and quality of goods and services. If suppliers have a high bargaining power, they can demand higher prices and better terms, which can increase costs for organizations. Anticipating upcoming price increases in the products purchased by the industry is related to the bargaining power of suppliers.

When Organizations Consider Whether There Are Upcoming Price Increases in the Products