A segment is less attractive when ________.
A)it already contains very few strong and aggressive competitors
B)it is difficult for new entrants to come into the segment
C)it contains powerful suppliers who can control prices
D)no actual or potential substitute products exist
E)buyers have no bargaining power

Question

Quizplus · Accepted Answer

When a segment contains powerful suppliers who can control prices, the profitability of the segment becomes decreased, which makes the segment less attractive. This is because the suppliers can demand higher prices from the companies operating in the segment, which reduces their profit margins. Therefore, a segment containing powerful suppliers is less attractive to new entrants or companies looking to invest in the segment.

A Segment Is Less Attractive When ________