What characterizes leverage suppliers?

Leverage suppliers are characterized by vast competition and a low cost to switch. This situation arises when there are many suppliers offering similar products or services, making it relatively easy for buyers to change suppliers without incurring significant costs. In such a scenario, buyers have more negotiating power and can seek better terms, pricing, or service levels from different suppliers.

This dynamic is crucial because it allows organizations to utilize their purchasing power effectively. When many suppliers are competing for the same business, they are likely to offer more competitive prices and favorable conditions to attract and retain customers. This competitive environment can drive innovation and improve service quality as suppliers strive to differentiate themselves in a crowded marketplace.

The other options describe characteristics that do not align with the dynamics of leverage suppliers. High switching costs, limited competition, extensive variety without high value, and monopoly control suggest scenarios where buyers have less power and fewer options, which is contrary to the nature of leverage suppliers.