Final answer:
In the hardwood furniture industry, the threat of buyers is influenced by the number of suppliers and the differentiation of products. While many suppliers with no significant market share can increase buyer power, well-respected brands and price competition strategies can reduce this threat. Option b.
Step-by-step explanation:
Considering the hardwood furniture industry scenario, the threat of buyers can be influenced by various market conditions. When the industry has many suppliers and no single supplier has a significant market share, it tends to increase the power of buyers because they can easily switch between suppliers without significant consequences. Moreover, if the industry growth is slow and the products offered by suppliers are considered commodity-like, with little to differentiate them, buyers can also exert significant pressure on prices and demand higher quality, which is typically seen when supply exceeds demand.
On the other hand, slow industry growth does not necessarily equate to high buyer power if the suppliers provide differentiated, high-quality products, or other barriers to buyer power exist, such as well-respected brand names or reputation for price slashing in reaction to new competitors. These factors can mitigate the potential high buyer power by fostering buyer loyalty and reducing price sensitivity.