Computer and device manufacturers are dependent upon microprocessor producers for a highly differentiated product that is a critical computer component. The capabilities of a computer and the software it uses are defined by the particular microprocessor it uses, and producing a computer from a microprocessor is relatively easy.

According to Porter's model, which of the following statements would be true?

Computer manufacturers are a powerful group of buyers.

Computer manufacturers pose a threat to backward integration.

Microprocessor producers are a powerful group of suppliers.

Microprocessor producers would find forward integration difficult.