In what situation would competitive pressures from suppliers be considered strong?

Competitive pressures from suppliers are considered strong when suppliers control exclusive materials. This is because exclusive materials give suppliers significant leverage over manufacturers, as they are the only source for those essential inputs. When suppliers hold such a monopoly or strong bargaining position for unique materials, it can lead to higher costs for manufacturers and limit their ability to negotiate favorable terms. This scenario makes it challenging for companies to switch suppliers or find substitutes, thereby increasing the overall power of suppliers within the supply chain.

The other situations mentioned may influence supplier dynamics differently, but they do not necessarily indicate strong competitive pressures. Readily available alternatives would typically reduce supplier power, indefinite contracts could stabilize relationships without the need for competitive pressure, and when demand exceeds supply, the focus shifts more towards the manufacturers and customers rather than the suppliers.