The strength of competitive pressures that suppliers can exert on industry members is MAINLY a function of
A)whether needed inputs are in short supply and whether suppliers provide differentiated input that enhances performance of the product.
B)whether suppliers self-manufacture what they supply or source their items from other manufacturers.
C)whether the industry's position in the growth cycle is favorable.
D)whether technological change in the businesses of suppliers is rapid or slow.
E)whether the needs and expectations of supplier-seller relationships are changing slowly or rapidly.

Question

Quizplus · Accepted Answer

The strength of competitive pressures that suppliers can exert on industry members is mainly determined by whether the inputs are in short supply and whether suppliers provide differentiated input that enhances performance of the product. When inputs are in short supply or if suppliers can provide inputs that enhance the performance of the product in some way, they have more bargaining power and can exert greater competitive pressure on the industry members. Factors such as whether suppliers self-manufacture what they supply, industry's position in the growth cycle, technological changes in the businesses of suppliers, and changing needs and expectations of supplier-seller relationships may also have some impact but they are not as significant as the supply and performance-enhancing differentiation factor mentioned in option A.

The Strength of Competitive Pressures That Suppliers Can Exert on Industry