The relative power of industry participants and industry suppliers affects the pricing and profitability of both industry groups.

Question

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The power dynamics between industry participants and suppliers can have an impact on the pricing and profitability of both parties. For example, if a supplier has significant bargaining power, they may be able to charge higher prices for their products or services, reducing the profit margins of industry participants who rely on those inputs. Similarly, if industry participants have more negotiating power, they may be able to demand lower prices from suppliers, which could increase their own profitability.

The Relative Power of Industry Participants and Industry Suppliers Affects