Large customers usually have higher bargaining power over suppliers

A few large customers in the industry control the market

If the product or service is highly substitutable, customers have strong bargaining power

If demand is highly dependent on one supplier, the customer's bargaining power is weak

If customers have sufficient market information and analytical capabilities, it is easier for them to take the initiative in negotiating prices.

Customers who lack information and analytical skills have lower bargaining power

Large suppliers usually have stronger bargaining power

Control of the market by a few large suppliers reduces the bargaining power of buyers

Unique products or services can increase a supplier’s bargaining power

Substitutable products or services reduce the bargaining power of suppliers

Suppliers with high visibility and reputation have stronger bargaining power

Suppliers without visibility and reputation have weak bargaining power

Industries with high entry barriers reduce the threat of new entrants

Low entry barriers increase the threat of new entrants

Existing suppliers have a cost advantage in the market and the threat of new entrants is low

New entrants can enter the market at lower costs and the threat is higher

Industries with high brand awareness and strong customer loyalty have a low threat of new entrants

In industries with no well-known brands and low customer loyalty, the threat of new entrants is high

Lower price and better performing substitutes or services increase the threat

High-priced and/or inferior-performing substitutes or services reduce the threat

Easily available and widely distributed substitutes or services increase threats

Substitutes or services that are difficult to obtain or have limitations reduce the threat

There are more large competitors and the level of competition is higher

Control of the market by a few competitors reduces competition

Competitors who offer unique products or services are able to differentiate themselves from other players and are less competitive

The homogeneity of products or services makes it easier for competitors to substitute for each other, resulting in a higher degree of competition.

Competitors with offensive strategies increase competition

Alliances or partnerships between competitors can reduce the level of competition