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When using competitive forces theory, suppliers are powerful in which of the following situations? Select THREE that apply.
Suggested Answer: A, B, D
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Suppliers gain power when their products have limited substitutes, are highly differentiated, or when switching costs are high. These factors reduce buyer leverage and increase supplier influence, as described in Porter's Five Forces model.
28 comments · newest first
VI
Vincent
8 months ago
But what about B? Highly differentiated products can also empower suppliers.
RU
Rupert
9 months ago
I agree, A makes sense. Few substitutes mean more power.
ER
Erasmo
9 months ago
I’m surprised people think B applies here.
PA
Paris
9 months ago
Totally agree with A and D!
ST
Staci
9 months ago
Wait, how can F be a factor? That seems off.
EM
Emelda
9 months ago
I think B is also a strong contender.
YU
Yuonne
9 months ago
A and D are definitely true!
LO
Lonna
10 months ago
D is a good one too. High switching costs make suppliers more powerful.
JA
Jamal
10 months ago
Haha, E is a trick answer. Who cares about the volume purchased? That's not how supplier power works.
KI
Kiley
10 months ago
I thought B was also correct. Highly differentiated products give suppliers more power, right?
MI
Mitzie
10 months ago
I keep mixing up the concepts, but I think C about backward integration might be relevant. It's hard to remember all the details!
LA
Lajuana
10 months ago
I practiced a similar question where differentiation played a key role, so I'm leaning towards B being one of the right answers.
CA
Carlee
10 months ago
I think A, D, and C are the right answers.
DU
Dustin
11 months ago
I'm not entirely sure, but I think high switching costs could make suppliers more powerful, so maybe D is correct too?
ED
Eden
11 months ago
A, C, and F are the correct answers. Suppliers have more power when there are few substitutes, potential for backward integration, and the product is undifferentiated.
GE
Gerald
11 months ago
True, but D is crucial. High switching costs keep suppliers strong.
BR
Brett
11 months ago
This exam is making me hungry. I could really go for some undifferentiated fast food right about now.
MI
Micheal
11 months ago
I remember that suppliers are powerful when there are few substitutes, so I think A is definitely one of the answers.
CO
Cora
12 months ago
This is a good opportunity to apply the concepts we've covered. I'll make sure to read the question carefully and consider each option individually.
MI
Mirta
12 months ago
I'm a bit confused on how product differentiation and backward integration impact supplier power. Guess I'll have to reason through those.
JE
Jerlene
1 year ago
Undifferentiated products, few substitutes, and high switching costs - those seem like the obvious ones. But I'm not sure about the other options.
NO
Novella
1 year ago
Okay, I remember learning about this in class. I think the key is identifying situations where suppliers have more leverage over the buyer.
SV
Svetlana
1 year ago
Hmm, this looks like a tricky one. I'll need to think through the competitive forces theory and how supplier power is affected by different factors.
LU
Lura
7 months ago
Agreed! A, D, and F seem like the best choices overall.
JI
Jina
7 months ago
F is also a strong contender since undifferentiated products give suppliers leverage.
TY
Ty
7 months ago
True, but I feel like B is less relevant here.
GL
Glenna
8 months ago
What about C? Backward integration can really shift power.
AL
Albert
8 months ago
I think A and D are definitely key factors.