Which of the following statements is true about complementors?
A) Their impact on industries was first recognized by Porter's five forces model.
B) They have little importance in high-technology industries.
C) They have the power to impact the sales of the industry to which they supply complement products.
D) They tend to increase the sales of the industry they are supplying complements to by producing fewer low-quality complement products.
E) They cannot gain enough power to extract profits from the industry to which they supply complement products.

Question

Quizplus · Accepted Answer

Complementors are entities that provide complementary products or services to an industry. They can impact the sales and profitability of the industry they supply complement products to. Therefore, option C is the correct choice. Option A is false because the concept of complementors was first introduced by Brandenburger and Nalebuff's value net model. Option B is false because complementors can be very important for high-technology industries. Option D is false because producing low-quality products will not increase the sales of complementors. Option E is false because complementors can gain power and extract profits from the industry they supply complement products to, particularly if they have a strong bargaining position.

Which of the Following Statements Is True About Complementors