Final answer:
Buyer power is high when customers have fewer options, as per Porter's Five Forces Model. The more limited the choices for the customers, the higher their bargaining power, influencing supplier decisions on pricing and quality.
Step-by-step explanation:
In accordance with Porter's Five Forces Model, buyer power is high when customers have fewer options. Buyer power is high when customers have fewer options, as per Porter's Five Forces Model. The more limited the choices for the customers, the higher their bargaining power, influencing supplier decisions on pricing and quality.The correct option is A) Buyer.
Michael Porter's model analyzes five critical forces that shape the competition within an industry. One of these forces is buyer power, also known as the bargaining power of customers. When buyers have fewer options from which to choose, they hold more power over the suppliers because the suppliers are more dependent on them. This power can influence pricing, quality, and terms of sale. Conversely, when there are many suppliers or alternatives, buyer power is weakened, as customers can easily switch to another vendor if their demands are not met.