In which one of the following instances are the competitive pressures stemming from supplier bargaining power NOT weakened?
A) When industry members pose a credible threat of backward integration into the business of suppliers
B) When the cost of switching from one supplier to another is low
C) When the buying firms purchase in large quantities and thus are important customers of the suppliers
D) When the item being supplied is a commodity
E) When the items purchased from suppliers are in short supply

Question

Quizplus · Accepted Answer

When items purchased from suppliers are in short supply, suppliers have more power because buyers have fewer alternatives, thus not weakening the competitive pressures from supplier bargaining power.

In Which One of the Following Instances Are the Competitive