Reference no: EM132387698

Force 1: Threat of new entrant (Economies of scale, capital requirements, production differentiation, switching cost, incumbent's proprietary knowledge, incumbent's access to raw materials and incumbent's access to favorable government policies)

Force 2: Bargaining power of buyers (concentration of buyers relative to the studied company, differentiation of products/service of the studied company, switching cost of buyers, importance of the studied company's input to the quality of buyer's final product, extent of buyer's profits, threats of backward integration by buyers)

Force 3: Bargaining power of suppliers (concentration of suppliers relative to the studied company, differentiation of products/service of the studied company, availability of substitute products, switching cost of the studied company, importance of the suppliers' input to the quality of studied company's final product,threats of backward integration by suppliers)

Force 4: Threat of substitutes (which products/services are the substitutes of the product/service offered by the studied company?, relative price-performance ratio of substitutes over the product/services offered by the studied company)

Force 5: Intensity of competitive rivalry (number of competitors, industry growth rate, fixed cost, shortage cost, product differentiation, switching cost, exit barriers)

To what extent the competition is beneficial or destructive to the industry? (Price competition, advertising battles, new product introduction, upgrade of customer service and warranties)