The strength of competitive pressures that suppliers can exert on industry members is MAINLY a function of:
A) whether needed inputs are in short supply and whether suppliers provide differentiated input that enhances performance of the product.
B) whether suppliers self-manufacture what they supply or source their items from other manufacturers.
C) the industry's position in the growth cycle.
D) whether technological change in the businesses of suppliers is rapid or slow.
E) whether the needs and expectations of supplier-seller relationships are changing slowly or rapidly.

Question

Quizplus · Accepted Answer

The strength of competitive pressures that suppliers can exert on industry members is mainly determined by the availability of needed inputs and the degree to which suppliers offer differentiated inputs that can enhance the performance of the final product. If there is a shortage of inputs or suppliers offer unique, high-quality inputs, they can wield strong bargaining power over industry members.

The Strength of Competitive Pressures That Suppliers Can Exert on Industry