Question: In Porter's Five Forces framework, a supplier's high product differentiation increases their bargaining power because: Buyers can easily substitute similar products, like generic pharmaceuticals for
In Porter's Five Forces framework, a supplier's high product
differentiation increases their bargaining power because:
Buyers can easily substitute similar products, like generic
pharmaceuticals for branded ones
Suppliers offer unique products, like Intel's specialized
computer chips, which are hard to replace
Products are standardized, such as basic commodities like
steel, making it easy for buyers to switch suppliers
Competing suppliers sell identical goods, like raw coffee
beans, reducing supplier power
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