Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if:
A) differentiation among existing suppliers is high.
B) the suppliers' industry is highly fragmented.
C) existing suppliers lack economies of scale.
D) suppliers' goods or services cannot be substituted effectively.
E) cost advantages independent of size are negligible.

Question

Quizplus · Accepted Answer

Suppliers are powerful when their goods or services cannot be easily substituted, giving them leverage over the firms they supply.

Suppliers Are More Likely to Be Powerful Relative to the Firms