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Which of the following factors does not increase the bargaining power of a supplier?

A. Substitutability

B. Concentration of suppliers

C. A buyer is important to the supplier

D. High switching costs

Answer: Option C

Solution(By Examveda Team)

A buyer is important to the supplier does not increase the bargaining power of a supplier. The idea is that the bargaining power of the supplier in an industry affects the competitive environment for the buyer and influences the buyer's ability to achieve profitability. Strong suppliers can pressure buyers by raising prices, lowering product quality, and reducing product availability.

This Question Belongs to Management >> Strategic Management

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Comments ( 1 )

  1. Rajesh Nair
    Rajesh Nair :
    4 years ago

    High switching cost definitely increases the bargaining power of the suppliers

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