Which of the following statements describes a scenario in which the bargaining power of a supplier is strong?
A)There are many suppliers providing the same raw materials for comparable prices.
B)The availability of raw materials is less.
C)The supplier has excess inventory.
D)Competitors' have decreased demand for raw materials.

Question

Quizplus · Accepted Answer

When the availability of raw materials is less, the bargaining power of the supplier increases as they can charge higher prices and set more favorable terms since there are fewer options for the buyer to choose from. A strong bargaining power of the supplier means that they have the ability to dictate terms, prices, and other conditions of the transaction. A, C, and D describe scenarios where the bargaining power of the supplier is weak.

Which of the Following Statements Describes a Scenario in Which