Which one of the following is NOT a factor that affects the strength of supplier bargaining power?
A) Whether demand for supplier products is high and they are in short supply.
B) Whether industry members are a strong threat to integrate backward into the business of suppliers and self-supply their own requirements.
C) Whether industry members are struggling to make good profits because of slow-growing market demand.
D) Whether the costs of industry members to switch their purchases to alternative suppliers are high or low.
E) Whether the item being supplied is a commodity or is highly differentiated from supplier to supplier.

Question

Quizplus · Accepted Answer

Industry members struggling to make good profits because of slow-growing market demand does not affect supplier bargaining power directly. It may indirectly affect it if it causes industry members to have less purchasing power, but it is not a direct factor. The other options all directly affect supplier bargaining power.

Which One of the Following Is NOT a Factor That