Which forces typically represent vertical competition in a value chain?
A) potential entry and substitutes.
B) buyer power and rivalry among existing firms
C) supplier power and potential entry.
D) buyer power and supplier power

Question

Quizplus · Accepted Answer

Buyer power and supplier power represent the forces of vertical competition in a value chain. Buyer power refers to the bargaining power of buyers to negotiate prices, quality, and services from the suppliers. Supplier power refers to the bargaining power of suppliers to negotiate prices, delivery, and terms with the buyers. These two forces represent the upward and downward pressure in the value chain, respectively. The other options (A, B, and C) represent the forces of horizontal competition or substitution.

Which Forces Typically Represent Vertical Competition in a Value Chain