The bargaining power of suppliers is likely to be high:
A)When the suppliers' industry is concentrated
B)When suppliers are supplying differentiated products
C)When "our" (the customer's) industry is relatively fragmented
D)All of the above

Question

Quizplus · Accepted Answer

When the suppliers' industry is concentrated, there are fewer suppliers, giving them more power to negotiate prices or demand better terms. When suppliers are supplying differentiated products, customers cannot easily switch suppliers, which enhances the suppliers' bargaining power. If "our" (the customer's) industry is relatively fragmented, suppliers have more customers to choose from, making them less dependent on individual customers and increasing their bargaining power. Therefore, all of the above factors contribute to high bargaining power of suppliers.

The Bargaining Power of Suppliers Is Likely to Be High