Which of the following does not contribute to strong supplier bargaining power?

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The correct choice is based on the concept of commodity goods and their impact on supplier bargaining power. When an input is a commodity, it means that it is widely available, undifferentiated, and not unique to any single supplier. This high availability typically leads to lower bargaining power on the part of suppliers because buyers can easily switch to other suppliers without significant costs or disruptions.

In markets where the input supplied is a commodity, suppliers face competition from many other sources. This limits their ability to negotiate higher prices or impose unfavorable terms on buyers. On the contrary, when inputs are in short supply, suppliers can exert more influence over pricing and terms because the scarcity increases their importance. Similarly, when suppliers threaten to integrate forward into the industry or if the inputs lack substitutes, the power of suppliers tends to increase, allowing them to dictate terms more effectively.

Thus, the presence of good substitutes and the fact that supplies are plentiful contribute to weaker supplier bargaining power, making the identification of a commodity as a key factor in this scenario pertinent. This context illustrates why the choice of commodity input aligns with the concept of reduced bargaining power among suppliers.

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