Which force concerns how easily suppliers can influence prices, considering product uniqueness and supplier power?

• A. Power Of Suppliers
• B. Power Of Customers
• C. Threats of New Entrants
• D. Competitive Rivalry

Answer: (A)

Power of suppliers focuses on how much leverage suppliers have to influence the price and terms for the inputs a company needs. When the inputs are unique or highly differentiated and there are few alternative sources, suppliers can command higher prices and more favorable terms because buyers can’t easily switch. This situation directly describes why suppliers’ ability to influence prices matters in this context. In contrast, buyer power looks at how much customers can push prices down, threats of new entrants deal with barriers to entry, and competitive rivalry covers pricing/struggle among existing firms. So the force described here is Power of Suppliers.