In Porter's Five Forces model, conditions under which a supplier group can be powerful include all the following except:

Business

1 answer:

Scilla [3.8K]3 months ago

7 0

Answer:

D) readily available substitute products.

Clarification:

Porter's five forces cover the following aspects

Threat of new entrants
Supplier bargaining power
Buyer bargaining power
Substitution threats

A) low significance of the buyer to the supplier group.

True. Buyers possess less bargaining leverage when compared to suppliers.

B) significant differentiation by suppliers.

True. Greater differentiation offers a competitive edge and promotes market rivalry.

C) control exerted by a small number of suppliers.

True. This falls under the threat of new entries since a limited number of suppliers create barriers such as capital and licensing needs to deter new competitors.

D) readily available substitute products.

False. This suggests an abundance of suppliers ready to provide alternatives, weakening supplier power.

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