Market Entry Threat
High
Supplier Bargaining Power
Low
- Diffused supplier
- Non – differentiated product
- Low switching cost
- Face substitutes
+ Threat of forward integration
- Industries an important
customer
+ No scale effect
+ Low differentiation
+ Capital requirements low
- Learning and experience curves
+/- Access to distribution channels
+ Government policy bid mechanism use
Rivalry Amongst Competitor
Intense
+ High fixed costs
+ Perishable product
+ Lack of a price leader
+ Consistent size/power
- Slowly rising market price
- Low exit barrier
+ Homogenous offerings for management
consulting
Substitutes
Low – Moderate
+ In – house services
Buyer Bargaining Power
High
+ Homogenous offering
+ Concentration of buyers
+ Low value to customers
- Necessary product
+ Low switching cost
+ Buyers in low/non profit business
+Buyers could backward integrate
+ product does not save buyer money
+ Product quality is not important to
buyers’ final product quality
+ Purchased product is higher % of
cost