Scribd Logo
Upload

Welcome to Scribd!

  • 34 views

    Bargaining Power of Suppliers: Rivalry Among Existing Competitors

    Uploaded by

    rrttrrthaaaaa
    This document discusses how various factors can influence competition and pricing power within an industry. It outlines how concentration, barriers to entry, product differentiation, costs, and the bargaining power of suppliers and buyers all impact the level of rivalry between companies and their ability to raise prices or squeeze industry profits. The key competitive forces analyzed are the threat of new entrants, power of suppliers and buyers, and intensity of rivalry among existing competitors.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Bargaining Power of Suppliers: Rivalry Among Existing Competitors

    Uploaded by

    rrttrrthaaaaa
    34 views1 page
    This document discusses how various factors can influence competition and pricing power within an industry. It outlines how concentration, barriers to entry, product differentiation, costs, and the bargaining power of suppliers and buyers all impact the level of rivalry between companies and their ability to raise prices or squeeze industry profits. The key competitive forces analyzed are the threat of new entrants, power of suppliers and buyers, and intensity of rivalry among existing competitors.

    Original Title

    Doc9

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses how various factors can influence competition and pricing power within an industry. It outlines how concentration, barriers to entry, product differentiation, costs, and the bargaining power of suppliers and buyers all impact the level of rivalry between companies and their ability to raise prices or squeeze industry profits. The key competitive forces analyzed are the threat of new entrants, power of suppliers and buyers, and intensity of rivalry among existing competitors.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    34 views1 page

    Bargaining Power of Suppliers: Rivalry Among Existing Competitors

    Uploaded by

    rrttrrthaaaaa
    This document discusses how various factors can influence competition and pricing power within an industry. It outlines how concentration, barriers to entry, product differentiation, costs, and the bargaining power of suppliers and buyers all impact the level of rivalry between companies and their ability to raise prices or squeeze industry profits. The key competitive forces analyzed are the threat of new entrants, power of suppliers and buyers, and intensity of rivalry among existing competitors.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

     Raising input prices and hence squeeze the profitability

    of an industry
    Affected by :
     Concentration  Relative concentration
     Diversity of competitors  Switching costs
     Product level of differentiation  Product differentiation
     Perishable product  Few or no substitutes
    Bargaining
     Excess capacity and exit barriers  Suppliers
    power of serve many industries (low dependence on the
     High fixed costs and low marginal costs actual industrie)
    suppliers
     Low industry growth  Potential for forward integration

    Rivalry
    Threat of  Threat
    Relativeofprice and performance
    among
    New existing close
    of substitutes
    Entrants competitors substitutes
    Industry characteristics of
    substitutes
     Buyer propensity to substitute
    Affected by barriers to entry :
     Capital & technological
    requirements Bargaining
     Economies of Scale power of
    buyers
     Network effects
     Customer switching costs  Lowering output prices and hence squeeze the
     Unequal access to profitability of an industry
    suppliers & distributors Affected by :
     Legal restrictions  Relative concentration
     Brand loyalty  Switching costs
     Threat of retaliation  Product differentiation
     Buyers’ information
     Threat of backwards integration
     Degree of price sensitivity
    (income level, need for quality)

    You might also like