Question

According to the five forces model, an unattractive industry would include all of the following characteristics EXCEPT: a. low supplier power due to commodity inputs. b. high threat of substitute products due to a large number of low-cost alternatives. c. low barriers to enter. d. high bargaining power of buyers due to low switching costs.

Answer 1

Answer: a. low supplier power due to commodity inputs

Step-by-step explanation:

LOW SUPPLIER POWER in an industry is considered attractive because it creates an opportunity for larger profit margins. This is because buyers are not constrained by suppliers and are able to switch suppliers at lower costs. This drives prices down for the buyers and enables them to make a good profit on resale all else being equal.