Suppliers Are More Likely to Be Powerful Relative to the Firms

Multiple Choice

Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if:

A) differentiation among existing suppliers is high.
B) the suppliers' industry is highly fragmented.
C) existing suppliers lack economies of scale.
D) suppliers' goods or services cannot be substituted effectively.
E) cost advantages independent of size are negligible.