How does bargaining power affect the threat of new entrants

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Question: As part of Porter's Five Forces, we learned about suppliers' and buyers' bargaining power. Suppliers with strong bargaining power have the ability to charge prices that are more favorable to their bottom lines. In contrast, buyers with strong bargaining power have the ability to make firms lower prices. In your opinion, which of these brings the greater net positive? Which is better for the firm or the consumer? Are there some industries where the reverse is true? How does bargaining power affect the threat of new entrants, the threat of substitutes, and industry rivalry?

Reference no: EM133409074

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