Questions: Multiple Choice Question Pacific Specialty Bikes store gets customized parts for its high-end models from a local manufacturer, Premium Supply. When the manufacturer announced a price increase, the bike store tried to switch to other local manufacturers but learned they that they wouldn't be able to meet delivery schedules. As a result, Pacific Bike chose to pay the higher prices from Premium Supply. Which of Porter's competitive forces does this demonstrate? Threats of new entrants Bargaining power of suppliers Threats of substitute products or services Bargalning power of buyers Need help? Review these concept resources.

The answer is B: Bargaining power of suppliers.

Explanation for each option:

• Threats of new entrants: This force refers to the risk that new competitors might enter the market and increase competition. In this scenario, the issue is not about new competitors entering the market but rather about the existing supplier's influence over the bike store. Therefore, this option is incorrect.

• Bargaining power of suppliers: This force describes the power that suppliers can exert on businesses by raising prices, reducing quality, or limiting the availability of products. In this case, Premium Supply, the local manufacturer, has increased its prices, and Pacific Specialty Bikes has no viable alternative suppliers that can meet their delivery schedules. This situation exemplifies the bargaining power of suppliers, making this the correct answer.

• Threats of substitute products or services: This force involves the risk that alternative products or services could replace a company's offerings. The scenario does not mention any substitute products or services that could replace the customized parts, so this option is incorrect.

• Bargaining power of buyers: This force refers to the influence customers have over a business, often by demanding lower prices or higher quality. In this scenario, the focus is on the supplier's power over the bike store, not the bike store's power over its customers. Therefore, this option is incorrect.