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 Pharmaceuticals 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, one of Porter's five forces, 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