Supplier power tends to be higher when
A)Suppliers are concentrated
B)There are high costs to switching between suppliers
C)Both A&B
D)None of the above

Question

​Supplier power tends to be higher when
A)​Suppliers are concentrated
B)There are high costs to switching between suppliers
C)Both A&B
D)​None of the above

Quizplus · Accepted Answer

When suppliers are concentrated, they have more power over the companies that rely on them, as there are fewer alternative sources of supply available. Similarly, if there are high costs to switching between suppliers, then companies are less likely to switch, meaning suppliers have more power to set prices and terms. Therefore, both A and B contribute to higher supplier power.

​Supplier Power Tends to Be Higher When

Supplier Power Tends to Be Higher When