Power of suppliers is high when ___________.
(i) Concentration of suppliers is low;
(ii) Switching costs of the buyer are low;
(iii)
Importance of customer to the supplier is low;
(iv) Availability of substitute products is high
A) (i), (ii), (iii) and (iv)
B) (iv) only
C) (iii) only
D) (i) and (ii) only

Question

Quizplus · Accepted Answer

The power of suppliers is high when the importance of the customer to the supplier is low. This is because the supplier does not rely heavily on the business of any single customer, giving the supplier more leverage in negotiations. The other options describe scenarios that would typically decrease the power of suppliers, not increase it.

Power of Suppliers Is High When ___________