A segment becomes less attractive when powerful suppliers can control prices or reduce the quality or quantity of ordered goods and services.

Question

Quizplus · Accepted Answer

When suppliers hold a lot of power in a segment, they can dictate the terms of business, including pricing and availability of goods and services. This can make the segment less attractive for buyers because they may not have as much bargaining power and may have to accept whatever terms the suppliers offer. As a result, demand for products and services in the segment may decrease, leading to a less attractive market.

A Segment Becomes Less Attractive When Powerful Suppliers Can Control