According to Porter's five forces model, an oil producer will have increased ________ if the supply of oil drops sharply.

Question

Quizplus · Accepted Answer

If the supply of oil drops sharply, the oil producer will have increased bargaining power since the demand for oil remains high and the producer can charge higher prices. The other forces - threat of substitutes, risk of rivalry, threat of new entrants, and industry coalescence - may not necessarily be affected by a drop in supply.

According to Porter's Five Forces Model, an Oil Producer Will