______ in the Porter's Five Forces Model is high when buyers have many choices of whom to buy from and low when their choices are few.
A) Buyer power
B) Supplier power
C) Threat of new entrants
D) Rivalry among existing competitors

Question

Quizplus · Accepted Answer

The definition given in the question matches with the concept of buyer power in the Porter's Five Forces Model. When buyers have a lot of options to choose from, they can use their power to negotiate better prices and terms with existing suppliers. This reduces the profitability of these suppliers and increases competition in the industry. Therefore, high buyer power can be a threat to existing suppliers and is considered a significant force in the model.

______ in the Porter's Five Forces Model Is High When