5. THREAT OF NEW ENTRANTS THREAT OF SUBSTITUTES
• Independent retailers decreased. • Deal with various products.
• Chain stores • Chances of shifting is high.
• Centralized buying competitive advantage
POWER OF SUPPLIERS POWER OF BUYERS
• Historically, exploit the relationship. • Lower bargaining power
• Less power • High quality products – retailers’ honest
RIVARLY AMONG EXISTING FIRMS WITHIN AN INDUSTRY
• Cut throat Competition
• Reduce – frequent fliers, memberships, loyalty cards, etc..
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7. THREAT OF NEW ENTRANTS THREAT OF SUBSTITUTES
• Ownership of a telecom license • Cable TV – direct lines, broadband services
• Finance
POWER OF SUPPLIERS POWER OF BUYERS
• Less power • Increased choice – high bargaining power
• Talented managers & engineers • Switching costs – individual & large business
customers.
RIVARLY AMONG EXISTING FIRMS WITHIN AN INDUSTRY
• Usage of phone, competition is high
• Price
• Value added services
• Profitability low
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9. THREAT OF NEW ENTRANTS THREAT OF SUBSTITUTES
• Saturated Market • Time, Money
• Brand Name & Recognition • Personal References & convenience
POWER OF SUPPLIERS POWER OF BUYERS
• Dominated – Boeing & Airbus • Low bargaining
• Not much of difference. • Consider Service of airline too.
RIVARLY AMONG EXISTING FIRMS WITHIN AN INDUSTRY
• High competition
• Cut throat competition
• Low Profitability
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11. THREAT OF NEW ENTRANTS THREATS OF SUBSTITUTES
• Very low barriers to entry • No substitutes for the medicines
• Government policies supportive • Biotechnology is a threat to synthetic pharma products
• Entry price regulation exists
• Economies of scale exist
• Proprietary technology
• Product existence
POWER OF SUPPLIERS POWER OF BUYERS
• Volume benefits occur • End consumers do not have bargaining power
• Inputs standard, available locally • Brand identity exists but is in the hands of Influencer (Doctors)
• Numerous suppliers-switching cost low • Price Sensitivity is less
• Suppliers can go for forward integration • Highly fragmented market, so buyer concentration v/s industry
is low
• Raw material cost constitute more than 50% of the total
expenses
RIVARLY AMONG EXISTING FIRMS WITHIN AN INDUSTRY
• Industry Competition
• Highly competitive.
• Top five players have mere 18% market share
• 18% market share
• Lower fixed cost and high working capital 11
13. THREAT OF NEW ENTRANTS THREAT OF SUBSTITUTES
• Substantial entry • Fairly mild
• New company requires high capital. • Other forms of transportation available
• Achieving minimum efficient scale is prohibitive
• Enter through strategic partnership, buying, merging
• Domestic market works well locally than globally
POWER OF SUPPLIERS POWER OF BUYERS
• the power axis is tipped in industry • The power axis is tipped in the consumers’ favor
• Powerful buyers dictate their terms to supplier • Low switching costs from among competing brands.
RIVARLY AMONG EXISTING FIRMS WITHIN AN INDUSTRY
• Intense due to the entry of foreign companies
• Rivalry - high with any product being matched in a few months by the competitors
• Technical capabilities
• Collaboration with international players
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