When consumers consider whether they have the ability and resources themselves to manufacture the products they are purchasing from the industry, this issue refers to the ________ of the Porter five forces model.
A) bargaining power of buyers
B) threat of potential entrants
C) threat of substitute products
D) bargaining power of suppliers
E) None of the answer choices are correct.

Question

Quizplus · Accepted Answer

The bargaining power of buyers includes considerations of how easy it is for buyers to drive prices down, which can be influenced by their ability to find alternative sources for the product or to make the product themselves. If consumers can easily manufacture the product or find alternative ways to fulfill their needs, they have more power over the industry.

When Consumers Consider Whether They Have the Ability and Resources