Traditional Culture Encyclopedia - Traditional festivals - In which of the following cases, suppliers have strong bargaining power?
In which of the following cases, suppliers have strong bargaining power?
When the competition between suppliers is small, it means that the supply in the supplier market is relatively small and the demand is relatively large. In this case, suppliers have more bargaining space, because it is difficult for buyers to find other substitutes or choose other suppliers.
If the supplier's products are vital to the customer's business, then the supplier's bargaining power will be enhanced. Because customers need this product to maintain the normal operation of their business, they are more likely to accept higher prices or stricter trading conditions.
If suppliers can sell goods directly and compete with enterprises in the market, they usually have more bargaining power. Because suppliers can directly contact consumers or end users, grasp market information and customer needs, so as to better control prices and supply.
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