A supplier group is powerful if:
A) Its product is undifferentiated
B) Its product is unique
C) Its market is unique
D) It must contend with other products

Question

Quizplus · Accepted Answer

A supplier group is powerful if its product is unique because it gives the supplier group more bargaining power to negotiate with buyers. A unique product means that there are limited substitute products available, giving the supplier group more control over price and distribution. If the product is undifferentiated, it is likely that the power lies with the buyer as they can easily switch to another supplier who offers the same product. The uniqueness of the market is not a determinant of a supplier group's power, and it is not necessary for the group to contend with other products for it to be powerful.

A Supplier Group Is Powerful If