Potential Entrants:

1. Supplier Side Economies of Scale

2. Demand Side Benefits of Scale
3. Customer Switching Cost
4. Capital Requirement
5. Incumbency advantage
6. Distribution channels
7. Government Policies
8. Hight Barriers to Exit

 Supplier Side Economies of Scale: When existing competitors have cost

advantages due to their scale, they can price products lower, making it harder for
a new entrant to compete.
 Demand Side Benefits of Scale (Network Effects): The value of a product or
service may increase as more people use it, creating a preference for established
brands.
 Customer Switching Costs: If it costs customers a lot to switch to a new
provider, they are less likely to do so, which can deter new entrants.
 Capital Requirements: The initial investment needed to enter an industry can be
prohibitive, acting as a barrier to entry.
 Incumbency Advantages: Existing competitors may have advantages such as
technology, access to the best distribution channels, relationships with suppliers
and customers, or proprietary products.
  Access to Distribution Channels: If existing competitors control the distribution
channels, new entrants might struggle to get their products to market.
 Government Policies: Regulations can limit or encourage new entrants.
Licensing requirements, protectionist measures, and trade tariffs could all impact
this.
 High Barriers to Exit: This can deter new entrants if they perceive the risks of
entry as too high, given the difficulty and cost of exiting the industry later if
things don't work out.

Bargaining Power of Suppliers:

1. Supplier Concentration
2. Industry Switching cost
3. Differentiated products
4. Few or No substitutes of supplier Products
5. Credible Threat of Forward integration
6. Low dependence on Industry

Bargaining Power of Buyer:

1. Customer Concentration
2. Low Customer Switching Cost
3. Undifferentiated Industry products
4. Credible threat of Backward Integration
Factors that affect price Sensitivity
5. Concentration of Purchases
6. Customer Financial Pressures
7. Industry Impact on Product Quality

Threat of Substitutes:
1. Closeness of Substitutes
2. Performance/Price Ratio of the Substitutes

Threat of Compliment:
1. Compliments are concentrated
2. Relative Switching Cost
3. Influence on Demand
4. Asymmetric Threat

Industry Competition:
1. Undifferentiated products
2. Low Switching Cost
3. High Fixed Cost and low Marginal Cost
4. Price Volatility
5. Perishability
6. Competitors are numerous and roughly equal in size
7. Industry growth is slow
8. Exit Barriers are high
9. Rivals have diverse approaches