One of the five forces of industry analysis is understanding the bargaining power of your input suppliers.

Question

Quizplus · Accepted Answer

Understanding the bargaining power of input suppliers is indeed one of the five forces of industry analysis, as developed by Michael Porter. It refers to the degree to which suppliers of raw materials, components, or services can influence the prices, quality, or availability of their inputs. High bargaining power of suppliers can limit a firm's profitability and strategic options, while low bargaining power can create opportunities for cost savings or innovation.

One of the Five Forces of Industry Analysis Is Understanding