In the Five-Forces model,conditions under which a supplier group can be powerful include all the following EXCEPT:
A) lack of importance of the buyer to the supplier group
B) high differentiation by the supplier
C) dominance by a few suppliers
D) readily available substitute products

Question

Quizplus · Accepted Answer

A supplier group will be powerful when the supplier group is dominated by a few companies and is more concentrated (few firms dominate the industry) than the industry it sells to; the supplier group is not obliged to contend with substitute products for sale to the industry; the supplier group's products are differentiated or it has built up switching costs for the buyer; or the industry is not an important customer of the supplier group.

In the Five-Forces Model,conditions Under Which a Supplier Group Can