Suppliers are powerful when the industry is dominated by a few large companies,no satisfactory substitutes are available,the selling industry is relatively more concentrated than the purchasing industry,and switching costs are high.

Question

Quizplus · Accepted Answer

This statement correctly reflects the factors that make suppliers powerful. These factors limit the options available to the purchasing industry and give suppliers greater leverage in negotiating prices and other terms.

Suppliers Are Powerful When the Industry Is Dominated by a Few