The risk of new entry by potential competitor

Rivalry among established firms

The bargaining power of the buyer
The bargaining power of the supplier
The threat of substitute products the direct competitors of Super Asia are Dawlance, Waves,
LG, and Haier etc. The Dawlance is market leader in the home appliances and PEL is still on second
number. But
i n w i n d o w r o o m a i r c o n d i t i o n e r ( W R A C ) t h e P E L i s m a r k e t l e a d e r. T h e i n
d i r e c t competitors for Super Asia in this industry are Samsung, Orient, Mitsubishi,
Sabro, Nobel and others Chinese brands available in the market. The Super Asia has
no bigthreat from all these companies
RISK OF NEW ENTRY BY POTENTIAL COMPETITORS:
High Investments.
Threat for new entrants is high in this industry, partly due to the fact that this industry is alucrative industry
and is very attractive for foreign companies. But in order to really make a mark in this
industry, you need to have strong investment and funding. For thismatter, Super Asia is at risk of the
influx of foreign investments in this sector.
Foreign Brands.
Foreign brands like LG, Sony, Samsung, Mitsubishi and Haier etc. are a big threat for Super
Asia. The quality and brand image of foreign brands is high as compared to Super Asia. Foreign
brands have captured the market of split AC and television.
THE BARGAINING POWER OF THE BUYERS
Companys buyers are the people who ultimately purchase and consume its products. If there
are so many brands and products available in the market at different prices,
the bargaining power of the buyers will be high because they have many alternatives, they
can demand to lower the prices. On the other hand if there are few brands or companiesin the
market, then the buyers will be in a weak position to bargain. As a result,
thecompany can raise its prices and earn greater profits. If we see the Pakistani industry
the bargaining power of the buyers is very high because a variety of products are available inthe market at
different prices. So the buyers can choose the product according to his requirements.
THE BARGAINING POWER OF THE SUPPLIERS:
Suppliers can be viewed as a threat when they are in few numbers in the market. In thatcase, the
suppliers are able to force up the price of inputs. The after effects of that canresult in the reduction in
the quality of inputs. If the suppliers of Super Asia Company areweak then company will force the
suppliers to reduce the prices of input and demand for higher quality. If the suppliers are selling
the products that have very few substitutes andare differentiated from others, then the suppliers are always
in good bargaining position.