Which one of the following is not a factor that affects the strength of supplier bargaining power?
A) Whether needed inputs are in short or ample supply
B) Whether industry members are a strong threat to integrate backward into the business of suppliers
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 or substitutes are high or low
E) Whether the item being supplied is a commodity that is readily available from many suppliers

Question

Quizplus · Accepted Answer

The level of profitability of the industry members has no direct impact on supplier bargaining power. The factors that affect supplier bargaining power are whether the inputs are in short or ample supply, the threat of backward integration by industry members, the costs of switching to alternative suppliers or substitutes, and whether the item supplied is a commodity that is available from multiple suppliers.

Which One of the Following Is Not a Factor That