Lu runs a company that manufactures satellites for commercial and government use. It has few rivals. At the moment, the power of buyers, the power of suppliers, and the threat of substitutes are all low. Based on this information, what can Lu conclude?

I have attached the full question with multiple choices:

The company is likely to be very profitable as long as the threat to entry is very low.

Explanation:

As indicated in the question, the fact that power of buyers and suppliers implies that the company Lu runs has a higher bargaining power such that it is able to dictate prices for both buyers and suppliers,which would improve overall profitability.

On the other hand , the threat of substitutes being low means that company would likely retain most of its customers provided also that the barriers to entry are also high-threat of entry is low.

this business is a price setter.

hope this

answer; the above statement/question is ( true);