Supplier power tends to be low when
A)Suppliers are less concentrated
B)Inputs provided by the supplier are not vital
C)Inputs are homogenous
D)All the above

Question

​Supplier power tends to be low when
A)​Suppliers are less concentrated
B)Inputs provided by the supplier are not vital
C)Inputs are homogenous
D)​All the above

Quizplus · Accepted Answer

When suppliers are less concentrated, it means there are more options for the buyer to choose from, which reduces the supplier's power. When inputs provided by the supplier are not vital, it means the buyer can easily switch to another supplier, which decreases the supplier's power. When inputs are homogenous, it means that the buyer can easily find a substitute for the inputs, which again lowers the supplier's power. Therefore, all three factors contribute to a low supplier power, making choice D the correct one.

​Supplier Power Tends to Be Low When

Supplier Power Tends to Be Low When