Suppliers are powerful when:

Question

Quizplus · Accepted Answer

Suppliers are powerful when they offer a credible threat of forward integration. This means that they have the ability and willingness to enter the buyer's industry and compete directly with them. This can put pressure on the buyer to accept higher prices or other unfavorable terms in order to maintain the relationship with the supplier. The other options do not necessarily indicate supplier power. Satisfactory substitutes and commodity products can indicate low supplier power, and a highly fragmented industry can indicate low overall industry power for all players.

Suppliers Are Powerful When