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In the Five-Forces model, conditions under which a supplier group can be powerful include all the following EXCEPT: a. readily available substitute b. products lack of importance of the buyer c. to the supplier group dominance by a few suppliers d. high differentiation by the supplier

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Answer:

The correct answer is letter "A": readily available substitute.

Explanation:

American Harvard School Professor Michael E. Porter (born in 1947) states there are Five Forces determining the factors that influence industry competition and profitability. Those forces are:

  • The threat of new market players
  • The threat of substitute products  
  • Power of customers
  • Power of suppliers
  • Industry rivalry

According to Porter, the bargaining power of suppliers is powerful when switching costs of buyers are high, when there is a small number of suppliers compared to buyers, when switching costs of suppliers are low or when substitutes are unavailable.

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