QUESTION 19

Which of the following conditions does NOT cause suppliers to have strong bargaining power over the firms in an industry?

a.Suppliers pose a credible threat to integrate forward into the focal industry

b.The suppliers' input represents a smallfraction of the cost of thefocal industry's productor service

c.When satisfactory substitutes to the suppliers' products are not available

d.When there are high switching costs to move away from a supplier's product

e.The suppliers are in a highly fragmented (less concentrated) industry