Porters 5 Forces

Threat of Entry is HIGH

Customer switching costs are low

capital requirements are low

incumbents do not possess proprietary technology or established brand equity

new entrants expect that incumbents will not or cannot retaliate.

Power of Suppliers is HIGH

Incumbent firms face significant switching costs when changing suppliers

suppliers offer differentiated products

there are no readily available substitutes for the products or services that suppliers offer

suppliers can credibly threaten to forward-integrate into the industry.

Power of Buyers is HIGH

There are a few large buyers

each buyer purchases large quantities relative to the size of a single seller

the industry’s products are standardized or undifferentiated commodities

buyers face little or no switching costs

buyers can credibly threaten to backward-integrate into the industry.

Threat of Substitutes is HIGH

The substitute offers an attractive price-performance trade-off

the buyer’s cost of switching to the substitute is low.

Rivalry Among Existing Competitors is HIGH

There are many competitors in the industry

the competitors are roughly of equal size

industry growth is slow, zero, or even negative

exit barriers are high

products and services are direct substitutes.