Whether supplier-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of
A)whether the profits of suppliers are relatively high or low.
B)the average number of suppliers that each seller/industry member purchases from.
C)how aggressively rival industry members are trying to differentiate their products.
D)whether demand for supplier products is high and they are in short supply.
E)whether the prices of the items being furnished by the suppliers are rising or falling.

Question

Quizplus · Accepted Answer

The strength of competitive pressure from supplier-seller relationships in an industry often hinges on the balance between demand and supply for the suppliers' products. When demand is high and the products are in short supply, suppliers gain more power, potentially exerting stronger competitive pressure on the industry members they supply. This can affect the cost structures and profitability of those industry members.

Whether Supplier-Seller Relationships in an Industry Represent a Strong or Weak