Series 79 practice questionmediumPorter's Five Forces
Which of the following would INCREASE the bargaining power of buyers in an industry?
- AFew alternative suppliers
- BHighly differentiated products
- CStandardized products with many suppliers✓ Correct answer
- DHigh switching costs
Explanation
Why C — Standardized products with many suppliers
Standardization and abundant suppliers allow buyers to negotiate better terms. Differentiation, few suppliers, and high switching costs reduce buyer power.
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