According to Porter's five forces model, in which of the following situations would a supplier have the highest bargaining power?
A) a Houston-based vendor is the only supplier of a patented material for many smartphone manufacturers
B) a fashion brand's outlet catering to a niche market
C) a restaurant that serves only army veterans
D) a large retailer buying finished goods from many small suppliers

Question

Quizplus · Accepted Answer

In situation A, the supplier has the highest bargaining power because they are the only supplier of a patented material for many smartphone manufacturers, which gives them a competitive advantage and the ability to dictate terms and prices. In situation B, the niche market may limit the number of suppliers, but there may still be options for the brand. In situation C, the restaurant's limited customer base means there are few suppliers who can cater to their specific needs, but this does not necessarily mean that the suppliers have high bargaining power. In situation D, the large retailer has the advantage of buying from multiple suppliers, which reduces the bargaining power of any one supplier.

According to Porter's Five Forces Model, in Which of the Following