Question

When buyers are able to join together to put pressure on a supplier, this is which of Porter's Five Forces?

Select one:

A. Threat of new entrants

B. Threat of substitute products

C. Competitive rivalry

D. Bargaining power of customers

Answer 1

Under Porters five forces model bargaining power of buyers states that the buyers will have bargaining power with collective pressure of the supplier of companies producting goods or providing services.

Answer is Option D)

Threat of new entrants refer to threat that new competitors may provide competetion to existing companies in industry.

Threat of substitute products refers to availability of some other product that customer can purchase as substitue for existing purchasing product.

Competitive rivalry refers to the extent of competition among the existing firms.