In the Context of Porter's Five Forces Model, Customer's Bargaining

question 82

Multiple Choice

In the context of Porter's five forces model, customer's bargaining power refers to

• A) a customer's ability to create barriers to entry.
• B) a customer's ability to alter his/her value chain.
• C) a customer's ability to integrate IT.
• D) a customer's ability to negotiate better prices.
• E) a customer's ability to create substitutes.

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Definitions:

New Customer Segments

Identifying and targeting previously unrecognized groups of customers with specific needs or preferences within a market.

Diversification Strategy

A business approach that involves entering into new markets or creating new products to spread risk and depend less on a single market or product line.

Forward Integration

A business strategy where a company controls the distribution or supply chain for its products by moving downstream in the production process, often to get closer to the end consumer.

Acquire Supplier

Acquiring a supplier involves taking over or merging with a company that provides essential goods or services to your business, aiming to streamline operations or secure supply chains.