The bargaining power of suppliers increases as ____________.
A) more suppliers enter the market
B) importance of buyers to supplier group increases
C) switching costs for buyers decrease
D) threat of forward integration by suppliers increases

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 industry is not an important customer of the supplier group; the supplier group's 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 Increases as ____________