Which of the following factors requires the least consideration when assessing supplier power relative to the upstream industry in which it buys raw materials?
A)Number of competitors in downstream market
B)Purchase volume of raw materials
C)Availability of substitute inputs
D)Number of upstream suppliers
E)Ability of suppliers to price discriminate

Question

Quizplus · Accepted Answer

The number of competitors in the downstream market does not directly affect supplier power over raw materials. It is therefore the factor that requires the least consideration when assessing supplier power relative to the upstream industry. The other options are all relevant when assessing supplier power. The purchase volume of raw materials can impact the bargaining power of buyers, the availability of substitute inputs can give buyers more options to switch suppliers, the number of upstream suppliers can affect the competition among suppliers, and the ability of suppliers to price discriminate can give suppliers more power over individual buyers.

Which of the Following Factors Requires the Least Consideration When