Suppliers are most powerful when:Question 17Select one:There are very few or no substitutes availableWhen the bargaining power of buyers is highEconomies of scale in the industry are highCompetitive rivalry in the industry is high

Powerful suppliers capture more value by charging higher prices, limiting quality or services, or shifting cost to industry participants. Which of the following supplier-related factor will impose constraints on the profitability of the industry participants?Group of answer choicessuppliers depend heavily on the industrysuppliers are less concentrated than industry participantscredible threat of forward integrationmany substitutes being available for supplier products

Which of the following is NOT a factor that causes buyer bargaining power to be stronger?Question 3AnswerA.Some buyers are a threat to integrate backward into the business of sellers and become an important competitor.B.Buyers are small and numerous relative to sellers.C.Buyers have considerable discretion over whether and when they purchase the product.D.Buyers purchase the item frequently and are well-informed about sellers' products, prices, and costs.E.The costs incurred by buyers in switching to competing brands or to substitute products are relatively low.

Which of the following is not a reason that industry rivals are often motivated to enter into strategic partnerships with key suppliers?Multiple Choiceto enhance the quality of parts and components being supplied and/or to reduce defect ratesto speed the availability of next-generation componentsto reduce the bargaining power they face from buyers of their productsto squeeze out important cost savings for both themselves and their suppliers

Name the 4 most important factors for businesses when choosing suppliers:

In which of the following instances are industry members NOT subject to stronger competitive pressures from substitute products?Question 7AnswerA.The costs to buyers of switching over to the substitutes are low.B.Buyers are wary about using substitutes.C.The quality and performance of the substitutes are well-matched to what buyers need to meet their requirements.D.Buyer brand loyalty is weak.E.Substitutes are readily available at competitive prices.