Which of the following statements is true about the five forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment?
A) A segment is unattractive if the company's suppliers are unable to raise prices or reduce quantity supplied.
B) A segment is unattractive if buyers possess strong or growing bargaining power.
C) A segment is attractive when there are actual or potential substitutes for the product.
D) A segment is attractive if it already contains numerous, strong, or aggressive competitors.
E) The most attractive segment is one in which entry barriers are low and exit barriers are high.

Question

Quizplus · Accepted Answer

According to Porter's five forces, the bargaining power of buyers is one of the key factors that determines the attractiveness of a market or market segment. If buyers have significant bargaining power, they can demand lower prices or higher quality, which can reduce profitability for companies in that market segment. Therefore, a segment is unattractive if buyers possess strong or growing bargaining power. The other answer choices are not accurate according to Porter's five forces.

Which of the Following Statements Is True About the Five