The bargaining power of suppliers is likely to be high

Question

Quizplus · Accepted Answer

The bargaining power of suppliers is likely to be high when the suppliers' industry is concentrated because a few dominant suppliers can control the market and dictate prices. Similarly, when suppliers are supplying differentiated products, the buyers' options become limited, and they become more dependent on the supplier, giving the supplier more bargaining power. Additionally, when "our" (the customer's) industry is relatively fragmented, the buyer's bargaining power may be limited as the suppliers have a larger customer base to sell their products to. Therefore, all of the above options contribute to the suppliers' high bargaining power.

The Bargaining Power of Suppliers Is Likely to Be High