A market segment is less attractive when ________.
A) there are few aggressive competitors in the segment
B) it is difficult for new entrants to enter the segment
C) it contains powerful suppliers who can control prices
D) substitute products are unavailable in the segment
E) buyers in the market segment have weak bargaining powers

Question

Quizplus · Accepted Answer

A market segment is less attractive when it contains powerful suppliers who can control prices. This makes it more difficult for companies to earn profits and compete effectively. Few aggressive competitors in the segment (A) could actually make the segment more attractive as there is less competition. Difficulty for new entrants (B) could be a barrier but does not necessarily make the segment less attractive. Substitute products (D) being unavailable could actually make the segment more attractive as there are fewer alternatives for customers. Weak bargaining power of buyers in the market segment (E) could also make the segment more attractive as companies have more control over pricing.

A Market Segment Is Less Attractive When ________