In which of the following situations would the bargaining power of suppliers be highest?
A) a single vendor providing raw materials to many department stores
B) a fashion outlet catering to a niche market
C) a bank liquidating during a fire sale
D) a large retailer buying goods from many small suppliers

Question

Quizplus · Accepted Answer

When there is a single supplier providing raw materials to many buyers, the supplier has a strong bargaining power as the buyers are heavily dependent on that supplier for their raw material needs. Hence, in this scenario, the bargaining power of suppliers would be the highest.

In Which of the Following Situations Would the Bargaining Power