Porter's Analysis

• Threat of New Entry

— Product Identification

— Experiences are needed, but

training is easily available

— Competitors will keep on lowering

their prices

— Brand Identity

— Control of Distribution Channels

• Bargaining power of
suppliers
— Uniqueness of service
— Ability to substitute
— Switching cost is low
Rivalry among
Competitors
— Customer loyalty
— Quality differences
— Switching costs
• Bargaining power of
buyers
— Price sensitivity
— Seller's brand
reputation is necessary to
customer
— Buyers purchases in a
small quantity

• Threat of substitute products

or services

— Cost of change

— Concentration of competitors

— Other competitors might have

powerful strategies