Supplier power tends to be low when
A)The supplier provides non-critical inputs
B)The supplier provides homogenous inputs
C)Both A&B
D)None of the above

Question

​Supplier power tends to be low when
A)​The supplier provides non-critical inputs
B)The supplier provides homogenous inputs
C)Both A&B
D)​None of the above

Quizplus · Accepted Answer

When the supplier provides non-critical inputs and homogenous inputs, it is easier for the firm to switch to another supplier, reducing the supplier's bargaining power. Therefore, both options A and B contribute to low supplier power.

​Supplier Power Tends to Be Low When

Supplier Power Tends to Be Low When