Which of the following statements describes suppliers in a position of strong bargaining power?
A)wholesalers declaring end-of-season sales
B)companies negotiating supplier contracts after taxes on raw materials have been reduced
C)coffee planters during a season of frost that decreases production
D)providers of logistic support when fuel prices have been reduced

Question

Quizplus · Accepted Answer

In option C, coffee planters are in a position of strong bargaining power as they are facing a situation of decreased production due to frost, which results in a shortage of supply. Suppliers in a strong bargaining power position have the ability to raise prices or negotiate favorable terms due to their unique position or favorable market conditions. Other options, such as end-of-season sales or reduced fuel prices, do not necessarily indicate a strong bargaining power position for suppliers.

Which of the Following Statements Describes Suppliers in a Position