Question

Consolidation among fuel providers serving airport facilities is viewed in the five forces model of competition as a(n): a. reduction of the airlines' ability to benefit from economies of scale. b. increase in switching costs because the airlines have no choice but to use jet fuel and other oil products. c. increase in the bargaining power of suppliers of a critical input. d. increase in the intensity of rivalry among airlines for scarce resources.

Answer 1

Answer:

c: increase in the bargaining power of suppliers of a critical input

Explanation:

Five Forces Framework by Porter's can be regarded as a method involving analysis of competition in a business. It's analysis dream through

industrial organization economics determine forces that are responsible for competitive intensity. The forces are;

✓potential new market entrants

✓number and power of a company's competitive rivals

✓ influence of suppliers, customers,on company's profitability.

It should be noted that Consolidation among fuel providers serving airport facilities is viewed in the five forces model of competition as a increase in the bargaining power of suppliers of a critical input.