Your boss, Pam Anderson, has asked you to analyze the music industry using Porter's Five Forces Model. Which of the following represents buyer power in the music industry?
A) Established record labels like EMI, Sony, Universal
B) Walmart, Target, iTunes
C) Independent record labels
D) Game systems like Wii, social networks like Facebook

Question

Quizplus · Accepted Answer

Buyer power in Porter's Five Forces Model refers to the impact that customers have on an industry. In the music industry, retailers and platforms that purchase music to sell to the end consumer, such as Walmart, Target, and iTunes, represent buyer power because they can influence prices and demand terms that affect the industry's profitability.

Your Boss, Pam Anderson, Has Asked You to Analyze the Music