In the context of competitive markets, in which one of the following instances is supplier bargaining power and leverage not weakened?

• A. When buyers can easily switch to alternative suppliers
• B. When suppliers offer standardized products
• C. When there are few suppliers and many buyers
• D. When suppliers face intense competition among themselves

Answer: (C)

Verified step by step guidance

1. Understand the concept of supplier bargaining power: It refers to the ability of suppliers to influence the terms and conditions of supply, including price, quality, and delivery, in their favor.
2. Analyze the effect of buyers' ability to switch suppliers: When buyers can easily switch to alternative suppliers, supplier bargaining power is weakened because suppliers must compete to retain buyers.
3. Consider the impact of standardized products: If suppliers offer standardized products, buyers have less incentive to pay a premium, reducing supplier leverage and bargaining power.
4. Examine the market structure with few suppliers and many buyers: In this case, suppliers have more bargaining power because buyers have limited alternatives, increasing supplier leverage.
5. Evaluate the effect of intense competition among suppliers: When suppliers face intense competition, their bargaining power is weakened as they compete to attract buyers.