The bargaining power of an industry's suppliers is greater when:
A) the supply industry is fragmented.
B) switching costs are minimal for companies because of little difference among products offered by different suppliers.
C) the industry buys in large quantities.
D) the product that suppliers sell has many substitutes and is not vital to the companies.
E) the industry is not an important customer to the suppliers.

Question

Quizplus · Accepted Answer

The bargaining power of an industry's suppliers is greater when the industry is not an important customer to the suppliers. This is because the suppliers have less dependency on a particular industry, giving them more leverage in negotiations.

The Bargaining Power of an Industry's Suppliers Is Greater When