Threat of new entrant (High) Score on Rating scale 0-5Entry barriers (Low)Product Differentiation(low) 2Capital requirements(low) 3Switching costs(low) 2Access to distribution channels 1Economies of scale 1Brand Loyalty (low) 2Proprietory product technology(low) 1Average Score 13/7=1.85
Intensity of Rivalry Score on Rating scale 0-5Price competition(High) 5Advertising Battles(High) 5Competitors(numerous & fragmented) 3Market Growth(high) 2Fixed costs(low)-online business 2Differentiation(low) 2Switching costs(low) 1Brand Loyalty(low) 1Exit Barriers (Low as low FC, no 1specialised asset requirement etc)Average Score 22/9= 2.44
Bargaining Power of Suppliers Score on Rating scale 0-5(High)Threat of forward integration(airlines 5selling direct)Supplier product important input to 4buyer businessLow product differentiation, so low 2Switching costsAverage Score 11/3= 3.6Threat of Substitutes Score on Rating scale 0-5Online books(Relatively Low) 2Libraries 3Average Score 5/2 = 2.5
Bargaining Power of Buyers Score on Rating scale 0-5Buyer Group(Diverse retail & corporate 4buyers)Commoditized Products 5Switching Costs(low) 3Full information with buyers 5Price sensitivity(High) 5Brand Loyalty(low) 2Average Score 23/6= 3.83
Threat of new entrants (1.85) 4 3Rivalry among 2 Bargaining powerexisting players of buyers 1 (2.44) (3.83) 0 Bargaining power Threat of of suppliers substitutes (3.6) (2.5)
Industry is less attractive & less profitable to operate in.Dynamic & high growth IndustryThreat of new entrants in highStrong bargaining power of buyerIntense rivalry among existing playersIncreasing commoditization prevents value creation and profit earning
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