Which of the following attributes makes suppliers a stronger threat?
A) The supplier's industry is dominated by a small number of firms.
B) The product or service provided by suppliers is not highly differentiated.
C) Suppliers are threatened by substitutes.
D) Suppliers are not able to engage in forward vertical integration.

Question

Quizplus · Accepted Answer

If the supplier's industry is dominated by a small number of firms, then those firms have significant bargaining power over the buyer as they control the supply of the product or service. This makes them a stronger threat compared to other attributes listed.

Which of the Following Attributes Makes Suppliers a Stronger Threat