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:

Second Generation

Often refers to the offspring of immigrants or the subsequent version or iteration of a product or technology.

Existing Business

A company or enterprise that has been operative for a period of time and has a track record of financial and operational history.

Existing Business

Refers to a business that has already been set up and is currently in operation.

Goodwill

An intangible asset representing the value of a company's brand, customer relations, employee morale, and other factors not directly measurable but that contribute to earnings.