BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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High when buyers have few choices of whom to buy from and low when their choices are many
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Low when buyers have few choices of whom to buy from and high when their choices are many
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High when buyers have many choices of whom to buy from and low when their choices are few
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None of the above
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Detailed explanation-1: -The bargaining power of suppliers is one of the five forces that determine the intensity of competition in an industry. The others are barriers to entry, industry rivalry, the threat of substitutes and the bargaining power of buyers.
Detailed explanation-2: -The bargaining power of buyers comprises one of Porter’s five forces that determine the intensity of an industry. The other forces include barriers to entry, industry rivalry, the threat of substitutes and the bargaining power of suppliers.
Detailed explanation-3: -Porter’s five forces help to identify where power lies in a business situation. This is useful both in understanding the strength of an organisation’s current competitive position, and the strength of a position that an organisation may look to move into.
Detailed explanation-4: -The 5 elements in Porter’s 5 Forces are the Threat of new entrants, Bargaining power of buyers, Bargaining power of suppliers, Threat of new substitutes, and Competitive rivalry.