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25 August, 20:57

In Porter's 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.

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  1. 25 August, 22:20
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    D) readily available substitute products.

    Explanation:

    Porters five explains the following

    Threat of new entry Bargaining power of suppliers Bargaining power of buyers Threat of substitution

    A) lack of importance of the buyer to the supplier group.

    True. Buyers have less bargaining power as compared to suppliers

    B) high differentiation by the supplier.

    True. Higher differentiation leads to competitive advantage and rivalry within the market.

    C) dominance by a few suppliers.

    True. This falls under threat of new entry as the fewer suppliers create barriers such as capital requirement and licensing requirements to prevent new entrants

    D) readily available substitute products.

    False. This means there are more suppliers in the market that are ready to substitute a product thus making suppliers less powerful.
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