A firm's supplier poses a greater threat if the supplier's industry has a large number of firms, none of which dominate the supplying industry, than if the supplier's industry is dominated by a small number of firms.

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A supplier poses a greater threat when the supplier's industry is dominated by a small number of firms, as they have more power to influence prices and terms, compared to an industry with many firms where competition is higher and individual suppliers have less power.

A Firm's Supplier Poses a Greater Threat If the Supplier's