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CIPS L4M6 Exam - Topic 2 Question 69 Discussion

Actual exam question for CIPS's L4M6 exam
Question #: 69
Topic #: 2
[All L4M6 Questions]

When using competitive forces theory, suppliers are powerful in which of the following situations? Select THREE that apply.

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Suggested Answer: A, B, D

Suppliers gain power when their products have limited substitutes, are highly differentiated, or when switching costs are high. These factors reduce buyer leverage and increase supplier influence, as described in Porter's Five Forces model.


by Harris at Oct 28, 2025, 01:56 AM

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Vincent
15 hours ago
But what about B? Highly differentiated products can also empower suppliers.
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Rupert
6 days ago
I agree, A makes sense. Few substitutes mean more power.
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Erasmo
11 days ago
I’m surprised people think B applies here.
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Paris
16 days ago
Totally agree with A and D!
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Staci
21 days ago
Wait, how can F be a factor? That seems off.
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Emelda
26 days ago
I think B is also a strong contender.
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Yuonne
1 month ago
A and D are definitely true!
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Lonna
1 month ago
D is a good one too. High switching costs make suppliers more powerful.
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Jamal
1 month ago
Haha, E is a trick answer. Who cares about the volume purchased? That's not how supplier power works.
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Kiley
2 months ago
I thought B was also correct. Highly differentiated products give suppliers more power, right?
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Mitzie
2 months ago
I keep mixing up the concepts, but I think C about backward integration might be relevant. It's hard to remember all the details!
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Lajuana
2 months ago
I practiced a similar question where differentiation played a key role, so I'm leaning towards B being one of the right answers.
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Carlee
2 months ago
I think A, D, and C are the right answers.
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Dustin
2 months ago
I'm not entirely sure, but I think high switching costs could make suppliers more powerful, so maybe D is correct too?
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Eden
2 months ago
A, C, and F are the correct answers. Suppliers have more power when there are few substitutes, potential for backward integration, and the product is undifferentiated.
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Gerald
3 months ago
True, but D is crucial. High switching costs keep suppliers strong.
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Brett
3 months ago
This exam is making me hungry. I could really go for some undifferentiated fast food right about now.
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Micheal
3 months ago
I remember that suppliers are powerful when there are few substitutes, so I think A is definitely one of the answers.
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Cora
3 months ago
This is a good opportunity to apply the concepts we've covered. I'll make sure to read the question carefully and consider each option individually.
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Mirta
4 months ago
I'm a bit confused on how product differentiation and backward integration impact supplier power. Guess I'll have to reason through those.
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Jerlene
4 months ago
Undifferentiated products, few substitutes, and high switching costs - those seem like the obvious ones. But I'm not sure about the other options.
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Novella
4 months ago
Okay, I remember learning about this in class. I think the key is identifying situations where suppliers have more leverage over the buyer.
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Svetlana
4 months ago
Hmm, this looks like a tricky one. I'll need to think through the competitive forces theory and how supplier power is affected by different factors.
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