Which of the following can be defined as a threat according to the five forces model?
A)The level of rivalry among organizations in an industry is low.
B)Brand loyalty is very high.
C)There are a large number of suppliers.
D)Only a few large customers are available to buy an industry's output.
E)Products are unique and cannot be substituted.

Question

Quizplus · Accepted Answer

The power of large customers: If only a few large customers are available to buy an industry's output, they can bargain to drive down the price of that output.As a result, industry producers make lower profits.

Which of the Following Can Be Defined as a Threat