Question

In the five forces model, a buyer like Wal-Mart will exert a higher bargaining power over a supplier like the soft drink industry (Pepsi, Coke, etc.) when

		the buyer represents a real threat of backward integration that may result in developing its own soft drink
		the buyer represents a real threat of forward integration that may result in creating new distribution centers
		the soft drink industry is facing slow growth
		the soft drink industry limits the access to distribution channels

Answer 1

Correct answer is the buyer represents a real threat of backward integration that may result in developing its own soft drink

For software industry, the buyer like Wal-mart poses a real threat of backward integration that may result in developing its own soft drink