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 or whether ample supplies are readily available from several different suppliers.
B) whether suppliers self-manufacture what they supply or source their items from other manufacturers.
C) the industry's position in the growth cycle.
D) whether technological change in the businesses of suppliers is rapid or slow.
E) whether the needs and expectations of buyers of the industry product are changing slowly or rapidly.

Question

Quizplus · Accepted Answer

The strength of competitive pressures that suppliers can exert on industry members depends on whether needed inputs are in short supply or readily available from multiple suppliers. When supplies are in short supply, the suppliers get more bargaining power which can increase the pressure on industry members. On the other hand, when ample supplies are readily available from several suppliers, the suppliers have less bargaining power and industry members can reduce the pressure. Therefore, the answer is A.

The Strength of Competitive Pressures That Suppliers Can Exert on Industry