The bargaining power of suppliers increases as
A) threat of forward integration by suppliers increases.
B) importance of buyers to supplier group increases.
C) switching costs for buyers decrease.
D) more suppliers enter the market.

Question

Quizplus · Accepted Answer

A supplier group will be powerful when the supplier group is dominated by a few companies and is more concentrated (few firms dominate the industry) than the industry it sells to; the industry is not an important customer of the supplier group; the supplier group products are differentiated or it has built up switching costs for the buyer; or the supplier group poses a credible threat of forward integration.

The Bargaining Power of Suppliers Increases as