Which of the following is NOT descriptive of a high level of bargaining power of suppliers?
A) Substitutes are readily available.
B) The product or service is unique.
C) The supplier industry is dominated by a few companies, but sells too many.
D) The purchasing industry buys only a small portion of the supplier group's goods and services.
E) Suppliers are able to integrate forward and compete directly with their present customers.

Question

Quizplus · Accepted Answer

If substitutes are readily available, it means that the buyers have options to choose from and can easily switch to another supplier if the current one raises their prices or decreases the quality. This reduces the supplier's bargaining power. Therefore, if substitutes are readily available, it is not descriptive of a high level of bargaining power of suppliers.

Which of the Following Is NOT Descriptive of a High