Suppliers in an Industry Are Most Powerful When

question 36

Multiple Choice

Suppliers in an industry are most powerful when:

• A) there are few substitutes for the products that they sell.
• B) switching costs are low.
• C) companies in the industry threaten to enter the suppliers' industry.
• D) their profitability is significantly affected by the purchases of companies in a particular industry.
• E) they refrain from entering their customers' industry because of lack of resources.

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Definitions:

Present Tense

The form of verbs used to describe actions or conditions that are currently happening or general truths.

Confrontation

A direct encounter or challenge between parties where differences are openly discussed or faced, often seen as a means to resolve disagreements.

Confusion

A state of being bewildered or unclear in one’s mind about something.

Avoidance

A behavior or strategy aimed at keeping away from certain situations or stimuli that are perceived as harmful or unpleasant.