The bargaining power of buyers is likely to be high in relation to suppliers in which of the following situations?

According to Porter's Five Forces model, the bargaining power of buyers is high when they have significant leverage over their suppliers. A key determinant of this power is the relative size and concentration of the buyer compared to the supplier. When a buyer is large and purchases a significant volume relative to the supplier's total sales, the supplier becomes highly dependent on the buyer's business. This dependency grants the buyer substantial power to demand better prices, quality, or terms.

A. If the buyer's spend is a low proportion of the supplier's revenue, the buyer is unimportant, resulting in low bargaining power.
B. Lacking the ability to produce the item in-house (make vs. buy) increases dependency on the supplier, thus reducing the buyer's power.
C. Urgent demand weakens the buyer's position, as they have less time to find alternatives and are more likely to accept the supplier's terms.

- Porter, M. E. (2008). The Five Competitive Forces That Shape Strategy. Harvard Business Review, 86(1), pp. 78-93. (Reprint of original 1979 article with updated introduction).

- CIPS (2018), Commercial Negotiation L4M5, Chapter 1: The Nature of Commercial Negotiation, Section 1.5 'Sources of Power in Commercial Negotiation'. Profex Publishing Limited.

- Grant, R. M. (2018). Contemporary Strategy Analysis (10th ed.). Wiley. Chapter 3, 'Industry Analysis: The Fundamentals', provides a detailed explanation of buyer power within Porter's framework.