Which one of the following is not a factor that affects the strength of supplier bargaining power?
A) Whether needed inputs are in ample supply and are readily available from several different suppliers
B) Whether industry members are a strong threat to integrate backward into the business of suppliers and self-manufacture 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

The strength of supplier bargaining power is not affected by whether industry members are struggling to make good profits because of slow-growing market demand. This factor may affect the overall profitability of the industry, but it does not directly impact supplier bargaining power. The other factors listed, such as the availability of alternative suppliers, the threat of backward integration, and the costs of switching, all have a direct impact on supplier bargaining power.

Which One of the Following Is Not a Factor That