In the Five-Forces model, conditions under which a supplier group can be powerful include all of the following except
A)lack of importance of the buyer to the supplier group.
B)high differentiation by the supplier.
C)readily available substitute products.
D)dominance by a few suppliers.

Question

Quizplus · Accepted Answer

A supplier group will be powerful when the supplier group is dominated by a few companies and is more concentrated (few firms dominate the industry) than the industry it sells to; the supplier group is not obliged to contend with substitute products for sale to the industry; the supplier group products are differentiated or it has built up switching costs for the buyer; or the industry is not an important customer of the supplier group.

In the Five-Forces Model, Conditions Under Which a Supplier Group