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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Bargaining power of suppliers
Does the answer to bargaining power of supplies should always be either high or low?
I mean, what if company has suppliers for different types of materials? In that situation, the bargaining power would depend on which material you have a supplier of right?
For example, suppliers like Boeing and Airbus have high bargaining power against an airline company in terms of supply of aircrafts.
However, the airline company can have a high bargaining power against suppliers of maybe food items or flight crew staff?
Yes. Each supplier has to be treated on its merits. However, some supplirs cab be so powerful that they dominate the position. For example, if a monopoly supplier of a vital component doubled its prices the relative flexibility of other suppliers might be irrelevant.