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In Porter's Five Forces model, conditions under which a supplier group can be powerful include all the following except:
A) lack of importance of the buyer to the supplier group.
B) high differentiation by the supplier.
C) dominance by a few suppliers.
D) readily available substitute products.

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jenicamuchemwa

Answer:

D) readily available substitute products.

Explanation:

Porters five explains the following

  1. Threat of new entry
  2. Bargaining power of suppliers
  3. Bargaining power of buyers
  4. Threat of substitution

A) lack of importance of the buyer to the supplier group.

True. Buyers have less bargaining power as compared to suppliers

B) high differentiation by the supplier.

True. Higher differentiation leads to competitive advantage and rivalry within the market.

C) dominance by a few suppliers.  

True. This falls under threat of new entry as the fewer suppliers create barriers such as capital requirement and licensing requirements to prevent new entrants

D) readily available substitute products.

False. This means there are more suppliers in the market that are ready to substitute a product thus making suppliers less powerful.

For interpreting the ambitious atmosphere of a corporation Porter Five force model is used. In a market, the acquisition and competition potential of a business can be determined using the Five forces model.

The correct answer is:

Option D. readily available substitute products.

Porters Model is based on the following points and the answer can be explained as:

1.Rivalry among the current businesses.

2.Consumers capability of bargaining.

3.Suppliers control on bargaining.

4.Replacement commodity launch.

5.Intimidation from new contenders.

  • Option A. is accurate because consumers have less haggling power compared to suppliers. Hence, it cannot be the answer.

  • Option B. It is also true that higher differentiation drives competing for advantage and competition within the market.

  • Option C. is again true as this comes under the classification of the intimidation of new entry.

  • Option D. is false because in the market there will be more suppliers who are available to launch new commodities hence, making the supplier less authoritative.

Therefore, the correct answer is readily available substitute products.

To learn more about Porter's Five Forces model refer to the link given:

https://brainly.com/question/5183977

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