Identify a scenario where suppliers have a high level of bargaining power.

In the context of suppliers having a high level of bargaining power, the scenario involving airlines operating under pressure from fuel prices is particularly relevant. This situation highlights how external factors, such as fluctuating fuel costs, can create a scenario where suppliers hold significant influence over pricing and supply dynamics.

When airlines are facing high or unpredictable fuel prices, they become heavily reliant on fuel suppliers, often leading to situations where these suppliers can dictate terms to a greater extent. The critical nature of fuel for airline operations means that the airlines have limited alternatives, which increases the bargaining power of fuel suppliers. If fuel suppliers raise prices or restrict availability, airlines have few options but to accept those terms, as operational sustainability heavily depends on a consistent and affordable fuel supply.

This power dynamic can affect the overall profitability and pricing strategies of the airlines, as they may need to pass on the increased costs to consumers or adjust their operational models to accommodate these changes. As such, this scenario robustly illustrates the concept of supplier bargaining power being elevated due to their crucial role in the industry and the dependency of airlines on a volatile resource.