Which forces typically represent vertical competition in a value chain?
A) Potential entry and substitutes.
B) Buyer power and rivalry among existing firms
C) Supplier power and potential entry.
D) Buyer power and supplier power

Question

Quizplus · Accepted Answer

Buyer power and supplier power are the forces that represent vertical competition in a value chain. Vertical competition refers to the competition between firms at different stages of the value chain. In the case of buyer power, it is the power of the downstream firms to negotiate lower prices or better terms with their suppliers. In the case of supplier power, it is the power of the upstream firms to charge higher prices or dictate terms to their buyers.

Which Forces Typically Represent Vertical Competition in a Value Chain