Which of the following is not a factor affecting the strength of supplier bargaining power?

Prepare for the Global Strategy Exam. Use flashcards and multiple choice questions, complete with hints and detailed explanations. Master the material and excel on your test!

The strength of supplier bargaining power is influenced by various factors that affect their ability to negotiate favorable terms. One critical factor is the availability of inputs from several suppliers. When inputs can easily be sourced from multiple suppliers, the bargaining power of any single supplier decreases. This is because buyers have alternatives, allowing them to switch suppliers if necessary.

Another important factor is the threat of industry members to integrate backward, which means that businesses may choose to produce the inputs themselves rather than relying on suppliers. This potential move reduces the supplier's power, as it creates a competitive threat to their market position.

On the other hand, the option concerning whether suppliers have few options for selling their goods directly influences their bargaining power. When suppliers have limited alternatives, their bargaining position strengthens since they are more critical to the supply chain.

The aspect concerning industry members enjoying high profits does not directly affect the strength of supplier bargaining power. High profits for industry members might indicate a healthy market, but it does not inherently change the dynamics of power between suppliers and buyers. Bargaining power is more directly tied to the factors related to the number of alternatives and competitive threats, rather than the profitability of the companies in the industry. Therefore, this option stands out as not being a factor affecting supplier bargaining power

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy