Whether supplier-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of
A)whether the profits of suppliers are relatively high or low.
B)the number of suppliers that each seller/industry member purchases from on average.
C)how aggressively rival industry members are trying to differentiate their products.
D)the extent to which suppliers can exercise sufficient bargaining power to influence the terms and conditions of supply in their favor and the extent of seller-supplier collaboration in the industry.
E)whether the prices of the items being furnished by the suppliers are rising or falling.

Question

Quizplus · Accepted Answer

The strength of supplier-seller relationships in an industry depends on the extent to which suppliers can exercise bargaining power to influence the terms and conditions of supply in their favor and the degree of collaboration between sellers and suppliers. This can create strong competitive pressure for sellers if suppliers have significant bargaining power or if there is limited collaboration between sellers and suppliers.  Profits of suppliers, the number of suppliers, and pricing trends may have some impact but are not the primary factor in determining the strength of supplier-seller relationships in an industry. Differentiation efforts by rivals may also have an impact, but this is not the only or the most important consideration.

Whether Supplier-Seller Relationships in an Industry Represent a Strong or Weak