bargaining power of suppliers |
|
Definition
Advantage that results when (1) suppliers are concentrated—it is, however, usually illegal for them to openly or secretly form a cartel, (2) too few goods are chased by too many buyers, (3) a supplier's goods are unique or highly differentiated with few or no substitutes, (4) suppliers are forward integrated (see forward integration), and/or (5) high costs are involved in switching from one supplier to another. Suppliers in such position can (and do) demand premium prices.
email to a friend
print this definition
cite this definition
link to this page
bargaining power of suppliers is in the Negotiating & Conflict Resolution and Purchasing & Procurement subjects.
This content can be found on the following page:
http://www.businessdictionary.com/definition/bargaining-power-of-suppliers.html