Which of the following statements is true about the complementors?
A)Their impact on industries was first recognized by Porter's five forces model.
B)They have little importance in high-technology industries.
C)They have the power to impact the sales of the industry to which they supply complement products.
D)They tend to increase the sales of the industry they are supplying complements to by producing fewer low quality complement products.
E)They cannot gain enough power to extract profits from the industry to which they supply complement products.

Question

Which of the following statements is true about the complementors?
A)Their impact on industries was first recognized by Porter's five forces model.
B)They have little importance in high-technology industries.
C)They have the power to impact the sales of the industry to which they supply complement products.
D)They tend to increase the sales of the industry they are supplying complements to by producing fewer low­ quality complement products.
E)They cannot gain enough power to extract profits from the industry to which they supply complement products.

Quizplus · Accepted Answer

Complementors are firms that produce complementary goods or services that are used together with the focal firm's products or services. They have the power to impact the sales of the industry to which they supply complement products. For example, if a company produces gaming consoles, game developers are the complementors. The developers can impact the sales of the gaming console by producing games that are exclusive to their console. Hence, option C is the correct statement. Options A, B, D, and E are incorrect statements.

Which of the Following Statements Is True About the Complementors