In which one of the following instances is supplier bargaining power and leverage not weakened?
A) When industry members pose a credible threat of backward integration into the business of suppliers
B) When the cost of switching from one supplier to another is low
C) When the buying firms purchase in large quantities and thus are important customers of the suppliers
D) When the item being supplied is a commodity
E) When the items purchased from suppliers are in short supply

Question

Quizplus · Accepted Answer

If the items purchased from suppliers are in short supply, it gives the supplier more bargaining power as the buyer is more dependent on them.

In Which One of the Following Instances Is Supplier Bargaining