Question

Industry members have the potential to integrate backward and self-manufacture their own requirements. A. supplier products are differentiated and short in supply. B. the supplier industry is more concentrated than the industry it sells to.C. suppliers are not dependent on the industry for a large portion of their revenues.

Answer 1

Answer: I found the correct question:

Supplier bargaining power is weaker when:

supplier services are critical to industry members' production process.

supplier products are differentiated and short in supply.

industry members have the potential to integrate backward and self-manufacture their own requirements.

suppliers are not dependent on the industry for a large portion of their revenues.

the supplier industry is more concentrated than the industry it sells to.

The correct answer is "industry members have the potential to integrate backward and self-manufacture their own requirements.".

Explanation: If members of the industry have the ability to integrate their business model backwards in a way that manufactures for themselves the product that they buy from the supplier, they could replace their place and therefore not need the negotiating power of this supplier would be minimum.