What action do suppliers in a strategic position matrix usually take to defend their pricing power?

In a strategic position matrix, suppliers who hold significant power and influence in the market tend to vigorously defend their position against buyers. This approach is essential for maintaining their pricing power and ensuring that they can sustain higher profit margins. By actively defending their strategic position, these suppliers may engage in various tactics such as negotiating more favorable terms, improving customer relationships, or enhancing the perceived value of their offerings.

Defending their position becomes crucial when they recognize that their leverage might be challenged by buyers seeking to negotiate better prices or terms. Such an assertive stance helps to reinforce their market dominance and mitigate any threats to their pricing strategies.

The alternative options, while relevant in different contexts, do not directly align with the primary behavior of suppliers in a strong strategic position. Selling excess inventory at discounted prices would indicate a lack of pricing power. Engaging in aggressive marketing campaigns could be a tactic used for growth or expansion rather than as a defensive mechanism. Limiting production to drive up demand might be a strategic choice, but it doesn't necessarily reflect the supplier's behavior of defending existing pricing power in a competitive environment.