The bargaining power of suppliers is enhanced under which following market condition?
A) no threat of forward integration
B) low differentiation of the supplier products
C) greater availability of substitute products
D) dominance by a few suppliers

Question

Quizplus · Accepted Answer

A supplier group will be powerful when the supplier group is dominated by a few companies and is more concentrated (few firms dominate the industry) than the industry it sells to; the supplier group is not obliged to contend with substitute products for sale to the industry; the supplier group products are differentiated or it has built up switching costs for the buyer; or the supplier group poses a credible threat of forward integration.

The Bargaining Power of Suppliers Is Enhanced Under Which Following