RIVALRY AMONG EXISTING COMPETITORS

Competitive Rivalry Low 2.96

Determinants Description NOTES Rating (1-10) Threat Level Overall
Intensity
Are there too many competitors in the market and are they
Number of competitors equal in size/power? 5 Average

Industry growth Is industry slow or trending below average? 3 Low

Are there any restrictions that prevent the company from

Exit barriers leaving the market? 3 Low

Are fixed costs high? Are heavy investments needed to

Fixed costs remain competitive? 1 None

Switching costs Can similar prices be easily offered by competitors? 2 Very Low

Is there any competitor that customizes their products to

Product differentiation offer something unique? 3 Low

THREAT OF NEW ENTRANTS

New Entrants Low 2.74
Determinants Description Notes Rating Threat Level Overall
Intensity
Are customers losing interest in the existing products
Brand loyalty available in the market? 1 None

Is there a lack of industry-specific restrictions on new startup

Government policy or foreign entrants? 2 Very Low

Capital requirement Do you need low to minimum capital to enter the industry? 5 Average

Access to suppliers and distribution channels Is it easy to access markets? 3 Low

Cost advantages Do competitors have more experience in this field? 2 Very Low

THREAT OF SUBSTITUTE PRODUCTS

Substitutes Low 3.30
Determinants Description Notes Rating Threat Level Overall
Intensity

Buyer price sensivity Do the buyers have low high sensitivity? 1 None

Substitute offers an attractive price-performance trade-off

Closeness of substitutes compared to existing products. 2 Very Low

The number of substitute products/services is large and

Number of substitutes growing 3 Low

Buyer switching costs The buyer’s cost of switching to the substitute is low. 4 Moderately Low

Other technologies are emerging that may provide the same

Other technologies value. 5 Average

POWER OF SUPPLIERS
Suppliers Power Low 2.86
Determinants Description Notes Rating Threat Level Overall
Intensity

Number of suppliers Suppliers are concentrated or their orders are large 1 None

Patented products Are there too many patented products? 1 None

The degree to which an industry depends on suppliers for a

Supplier dependence large percentage of its total purchases 1 None

It would take signficant time, energy, and money to switch to

Supplier switching costs another supplier 2 Very Low

Products/services offered by suppliers are differentiated. It is

Product substitutes difficult for companies in an industry to find alternative 4 Moderately Low
suppliers
There are limited substitutes for what the supplier group
Supplier importance provides. Suppliers are important to the quality of industry’s 5 Average
products/services

The threat that suppliers could integrate forward to start

Forward integration making industry’s products/services 6 Medium

POWER OF BUYERS
Buyers Power Low 1.09
Determinants Description Notes Rating Threat Level Overall
Intensity

Number of buyers Buyers are concentrated or their purchases are large 1 None

There are too many similar or standardized products on the

Product differentiation market? 1 None

Is the industry depend on a grouip of buyers for a large

Buyer dependence percentage of its total sales? 1 None

Buyers can easily switch to another company's product

Buyer switching costs without incurring too much time, energy, or expense. Brand 1 None
loyalty is low.
The threat that buyers could integrate backward to start
Backward integration making industry’s products/services 1 None
 Porter's 5 Forces Analysis Threat Level
3.50 3.30 Rivalry
2.96 2.86 4.00
3.00 2.74
2.50
Rivalry
Threat Level

2.00 New Entrants 2.00

Buyers New Entrants
Substitutes
1.50
1.09 Suppliers
1.00 Buyers 0.00

0.50

0.00
Avg
Forces
Suppliers Substitutes