Bargaining Power of Suppliers

This refers to the level of control suppliers have over the products and prices they offer customers.

Supplier bargaining power is a feature of the available choice of suppliers (monopoly suppliers have greater bargaining power) and the importance of the product or service to the customer (if the customer doesn’t need the item for a business critical activity the supplier has less bargaining power).

Bargaining power of suppliers is a term normally found in strategy planning and management; explore our learning zone to discover more.