Shawn McGill is on the executive board for ABC pharmaceuticals.The company produces the number-one-selling cancer-fighting drug on the market.Due to its incredible success, ABC Pharmaceuticals has decided to increase the cost of the drug from $8 a pill to $15 a pill.Which force is ABC Pharmaceutical using to increase its drug price?
A)Supplier power.
B)Buyer power.
C)Threat of false entrants.
D)Business power.

Question

Quizplus · Accepted Answer

Supplier power is one of Porter's Five Forces; it measures the suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services).

Shawn McGill Is on the Executive Board for ABC Pharmaceuticals