Answer:
The answer is: Bargaining power of suppliers
Explanation:
Michael Porter developed his Five Forces Framework as a management tool for analyzing competition. It is divided into:
- Threat of new entrants
- Threat of substitutes
- Bargaining power of customers
- Bargaining power of suppliers
- Competitive rivalry
Bargaining power of suppliers: Pressure suppliers can exert on its costumers (individuals or organizations) by raising prices, lowering quality, or reducing availability of their products. When suppliers are strong enough to pressure their customers, usually the buyers will end up paying higher costs due to; higher prices, lower quality or reduced availability of the product.
In this case, since ABC Pharmaceutical is the leader in cancer fighting drugs, they will use their dominant supplier position to raise the price of their product affecting their customers (patients, insurance companies, other health care organizations).
