Which statement best describes the role of good substitutes in supplier bargaining power?

Good substitutes play a significant role in influencing supplier bargaining power, primarily by decreasing it. When there are good substitutes available, buyers have more options to choose from. This abundance of alternatives allows customers to switch easily from one supplier to another if they feel that the price or quality of a product from one supplier is less favorable.

As a result, suppliers find it more challenging to increase prices or impose unfavorable terms because they risk losing their customers to competitors who offer similar or even better products. If buyers can find alternatives that satisfy their needs without significant sacrifice in quality or price, suppliers' leverage in negotiations weakens significantly.

This dynamic emphasizes the importance of competition and the availability of substitutes in a market, where empowered buyers can make informed choices that ultimately reduce suppliers' power in the bargaining process.