A supplier will have more bargaining power
A) if it is able to provide the products that the industry is currently providing.
B) if the supplier's product is an important input to the industry.
C) if the supplier's products are differentiated or there are customer switching costs.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question

Quizplus · Accepted Answer

All the options listed contribute to increasing a supplier's bargaining power. If a supplier's product is crucial to the industry, if the products are differentiated, or if there are significant costs associated with switching suppliers, the supplier gains more leverage in negotiations and transactions.

A Supplier Will Have More Bargaining Power