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POWER OF SUPPLIERS IS HIGH WHEN:

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Presentation on theme: "POWER OF SUPPLIERS IS HIGH WHEN:"— Presentation transcript:

1 POWER OF SUPPLIERS IS HIGH WHEN:
Concentration relative to buyer industry is… Availability of substitute products is… Importance of customer to the supplier is… Differentiation of the supplier’s products and services is… Threat of forward integration by the supplier is…

2 POWER OF BUYERS IS HIGH WHEN:
Concentration of buyers relative to suppliers is… Volume of purchase is… Product differentiation of suppliers is… Threat of backward integration by buyers is… Percentage of total buyer’s cost spent on the supplier’s input is…

3 THREAT OF NEW ENTRANTS IS HIGH WHEN:
Economies of scale are… Product differentiation is… Capital requirements are… Switching costs are… Established firm’s proprietary knowledge is… Established firm’s access to raw materials is… Established firm’s control of distribution channels is…

4 INTENSITY OF COMPETITIVE RIVALRY IS HIGH WHEN:
Number of competitors is… Industry growth rate is… Storage costs are… Product differentiation is… Exit barriers are… Switching costs are…

5 THREAT OF SUBSTITUTE PRODUCTS IS HIGH WHEN:
Profitability of industry producing substitute is… Rate of improvement in price-performance relationship of substitute product is…


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