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Which of the following factors does not increase the bargaining power of a supplier?
- ASubstitutability
- BConcentration of suppliers
- CA buyer is important to the supplier
- DHigh switching costs
Correct answer: C
Discussion 1
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CCommunity
A buyer is important to the supplier
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.
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.