Which one of the following is NOT a factor in causing supplier bargaining power to be stronger?
A) The products/services needed from suppliers are in short supply.
B) Industry members can't integrate backward and self-supply themselves.
C) The item being supplied is a commodity.
D) The item being supplied significantly enhances the quality or performance of the products of industry members.
E) Suppliers are not dependent on the industry for a large portion of their revenues.

Question

Quizplus · Accepted Answer

When the item being supplied is a commodity, it means that it is readily available from multiple sources and therefore, suppliers do not have much bargaining power. The other options all contribute to stronger supplier bargaining power: a short supply of products/services needed, inability of industry members to self-supply, significant enhancement of product quality/performance, and suppliers not being dependent on the industry for a large portion of their revenues.

Which One of the Following Is NOT a Factor in Causing