What does bargaining power of suppliers mean?

bargaining power of suppliers meaning in Law Dictionary

dvantages that occur when suppliers tend to be concentrated, you will find a lot of buyers, the vendors products are of special-interest, manufacturers tend to be ahead incorporated, or its too costly to improve manufacturers. Now the provider has got the power to demand what they need.

bargaining power of suppliers meaning in Business Dictionary

Advantage that outcomes whenever (1) vendors tend to be focused it's, but frequently illegal for them to openly or secretly develop a cartel, (2) too few items are chased by way too many purchasers, (3) a supplier's products tend to be unique or highly differentiated with few or no substitutes, (4) manufacturers are forward incorporated (see forward integration), and/or (5) large costs are involved with switching from a single supplier to another. Companies in such place can (and do) demand advanced rates.