When using competitive forces theory, suppliers are powerful in which of the following situations? Select THREE that apply.

When using competitive forces theory, suppliers are powerful in which of the following situations? Select THREE that apply.
A . There are few substitute products
B . The product is highly differentiated
C . There is potential for backward integration
D . The switching costs are high
E . The volume purchased is not important
F . The product is undifferentiated

View Answer

Answer: A, B, D

Explanation:

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.