In a marketplace where there is a large number of suppliers, which of the following is true?
A.
There is low rivalry
B.
There is a low barrier to entry
C.
Buyer power is strong
D.
Buyer power is weak
The Answer Is:
C
This question includes an explanation.
Explanation:
When many suppliers exist, buyers have multiple options, increasing their bargaining power. Suppliers must compete for contracts, shifting power toward the buyer.
[Ref: CIPS L5M6 Study Guide, p.112 – Porter’s Five Forces: Buyer Power]
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