Supplier power refers to the ability of suppliers to influence the price and availability of goods and services. When suppliers are few or offer unique products, they can demand higher prices or impose unfavorable terms on businesses. This can affect a company's profitability and competitive position in the market. High supplier power can lead to increased costs for companies, making it essential for businesses to manage their supplier relationships effectively. Strategies such as diversifying suppliers or negotiating long-term contracts can help mitigate risks associated with strong supplier influence, ensuring a more stable supply chain and better pricing.