Buyers the buyers are the one that pays cash in

1. Buyers
The buyers are the one that pays cash in exchange to your goods and services. For example, the influenced of the price or in
the bargaining strategy. The buyer has a strong and magnified bargaining power. The threat of its bargaining power will be less if the
following factors notice:
a. There are several suppliers available in the market.
b. The buyer has the potential for backward integration.
c. The cost of switching the supplier cost is minimal.
d. The product represents a high percentage of the buyer’s cost.
e. The buyer purchases large portions of the seller’s product or services.
2. Potential New Entrants
A new entrant is defined as the one who enters something. For example, the level of capital requirements, if the business
requires huge capital, new entrants should decline to join the business. This gives a threat to the business. This can be notice if there is
the presence of the following factors:
3. Rivalry among Existing Firms
Rivalry is a state or situation in which people or groups are competing with each other. For example it depends on the
Marketing strategy of your competitor, like giving freebies and special offers. The intensity of rivalry among existing firms is
characterized to the following factors:
4. Substitute Products
Substitute means anything that takes the place or function of another. For example, the consumers decide to use margarine as a
substitute for butter. In case the price of butter increases, preferably the consumer will gradually switch to margarine.
A substitute product can give a big threat in the industry environment if the following factors are notice: