Your boss, Pam Anderson, has asked you to analyze the music industry using Porter's Five Forces Model. Which of the following represents supplier power in the music industry?
A) Established record labels like EMI, Sony, Universal
B) Walmart, Target, iTunes
C) Game systems like Wii, social networks like Facebook
D) Taylor Swift, Beyoncé, The Beatles, The Stones.

Question

Quizplus · Accepted Answer

Supplier power in Porter's Five Forces Model refers to the influence that the suppliers of raw materials, components, labor, or services to the industry can exert on the industry's participants. In the music industry, established record labels such as EMI, Sony, and Universal act as suppliers by providing the essential resources needed to produce, distribute, and promote music. They hold significant power due to their control over access to popular artists and their catalogs, as well as their financial and marketing resources.

Your Boss, Pam Anderson, Has Asked You to Analyze the Music