What is supplier power?
A) The ability of buyers to affect the price they must pay for an item
B) The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services)
C) High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market
D) High when there are many alternatives to a product or service and low when there are few alternatives from which to choose

Question

Quizplus · Accepted Answer

Supplier power refers to the suppliers' capacity to set or influence the prices of their goods and services, which can impact the cost structures of industries they supply to. This concept is part of Porter's Five Forces analysis, which assesses the competitive intensity and attractiveness of a market.

What Is Supplier Power