ada and by international treaties.

IT IS ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISC

of the United States & Canada and by international treaties. IT IS ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLIS

Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States & Canada and by international treaties. IT IS ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL BE SUED IN A COURT OF LAW.

INDUSTRY & COMPETITIVE FORCES ANALYSIS

INDUSTRY/COMPETITIVE FORCE
Current Rivalry Numerous competitors Few competitors Equally balanced competitors One or a few strong competitors Industry sales growth slowing Industry sales growth strong High fixed or inventory storage costs Low fixed or inventory storage costs No differentiation or no switching costs Significant differentiation or significant or switching costs Large capacity increments required Minimal capacity increments required Diverse competitors Similar competitors High strategic stakes Low strategic stakes High exit barriers Minimal exit barriers Potential Entrants Significant economies of scale No or low economies of scale Cost disadvantages from other aspects No other potential cost disadvantages Strong product differentiation Weak product differentiation Huge capital requirements Minimal capital requirements Significant switching costs Minimal switching costs Controlled access to distribution channels Open access to distribution channels Government policy protection No government policy protection Bargaining Power of Buyers Buyer purchases large volumes Buyer purchases small volumes Products purchased are significant part of buyers cost Products purchased arent significant part of buyers cost Products purchased are standard or undifferentiated

THREAT

OPPORTUNITY

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? Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States and

Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States & Canada and by international treaties. IT IS ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL BE SUED IN A COURT OF LAW.

Products purchased are highly differentiated and unique Buyer faces few switching costs Buyer faces significant switching costs Buyers profits are low Buyers profits are strong Buyer has ability to manufacture products being purchased Buyer doesnt have ability to manufacture products Industrys products arent important to quality of buyers products Industrys products are important to quality of buyers products Buyers have full information Buyers have limited information Bargaining Power of Suppliers Supplying industry has few companies and is more concentrated Supplying industry has many companies and is fragmented There are no substitute products for suppliers products There are substitute products for suppliers products Industry being supplied is not an important customer Industry being supplied is an important customer Suppliers product is an important input to industry Suppliers product is not an important input to industry Suppliers products are differentiated Suppliers products arent differentiated There are significant switching costs in suppliers products There are minimal switching costs in suppliers products Supplier has ability to do what buying industry does Supplier doesnt have ability to do what buying industry does Substitute Products There are few good substitutes There are several not-so-good substitutes There are no good substitutes

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