INDUSTRY AND COMPETITIVE FORCES ANALYSIS

7:06 PM Posted by Blony

. Bargaining Power of Buyers
Buyer purchases large volumes
Buyer purchases small volumes
Products purchased are significant part of buyer’s cost
Products purchased aren’t significant part of buyer’s cost
Products purchased are standard or undifferentiated
Products purchased are highly differentiated and unique
Buyer faces few switching costs
Buyer faces significant switching costs
Buyer’s profits are low
Buyer’s profits are strong
Buyer has ability to manufacture products being purchased
Buyer doesn’t have ability to manufacture products
Industry’s products aren’t important to quality of buyer’s products
Industry’s products are important to quality of buyer’s products
Buyers have full information
Buyers have limited information

Bargaining Power of Suppliers
Supplying industry has few companies and is more concentrated
Supplying industry has many companies and is fragmented
There are no substitute products for supplier’s products

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