Which one of the following is not a factor that affects the strength of suppliers' 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

Option C is the only choice that does not affect the strength of suppliers' bargaining power. The other options all have an impact on the suppliers' bargaining power - whether there is a shortage or surplus of inputs, whether there is a threat of backward integration, whether the industry members can easily switch suppliers, or whether the item supplied is easily available from multiple sources. However, a slow-growing market demand affects the industry's profitability, not the suppliers' power.

Which One of the Following Is Not a Factor That