Suppliers in an industry are most powerful when:
A) there are few substitutes for the products that they sell.
B) switching costs are low.
C) companies in the industry threaten to enter the suppliers' industry.
D) their profitability is significantly affected by the purchases of companies in a particular industry.
E) they refrain from entering their customers' industry because of lack of resources.

Question

Quizplus · Accepted Answer

Suppliers are most powerful when there are few substitutes for their products, as this limits the options available to companies in the industry, giving suppliers more leverage.

Suppliers in an Industry Are Most Powerful When