If suppliers have enough leverage over industry firms, they can raise prices high enough to significantly influence the profitability of their organizational customers.

Question

Quizplus · Accepted Answer

If suppliers have a high degree of power and control over the supply chain, they can increase prices or limit availability of key inputs, which can have a significant impact on the profitability of their customers. This is why supplier power is an important factor to consider when assessing industry competitiveness and profitability.

If Suppliers Have Enough Leverage Over Industry Firms, They Can