Forces

1. Entry Barrier
Economies of scale
Network effects
Customer switching costs
Capital requirements
Advantages independent of size
Government policy
Credible threat of retaliation

2.Bargaining Power of Suppliers

Concentrated (or limited) supplier industry
Suppliers not dependent on industry for majority of revenue
Incumbent firms face supplier switching costs
Suppliers offer differentiated products
There are no supplier substitutes.
Suppliers can forward-integrate into the industry.

3. Bargaining Power of Buyers

There are a few buyers & each buyer purchases large quantities.
The industry’s products are standardized or undifferentiated commodities.
Buyers face low or no switching costs.
Buyers can backward integrate into the industry.

4. Threat of Substitutes
Many close substitutes are available
The substitute offers an attractive price-performance trade-off.
The buyer’s cost of switching to the substitute is low.

5. Rivalry among competitors

Industry concentration
Competitors are of roughly equal size
Industry growth
Strategic commitments
Exit barriers
Power of Complementors
PC Industry
Attractiveness (1
(Low)-5(High))
2