Porters five forces
- Threat of new competition
Barrier to entry: Economic is scale, product differentian , capital requirements, switching cost , distribution channel,cost advantage, technology/IP, access to material
2)Threat of substitution
Most vulnerable,price based competition high profits industries
3)Customer bargaining power.
Most powerful customer, concentrated buyers , standardized products,low switching cost ,buyer has full information.
4)Supplier bargaining power
Most powerful supplier ,few alternative,credible threat of forward integration.
5)Competitive rivalry
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