global strategy

Threat of New Entrants Is Low

When: High Low Justification

Economies of scale are X

Product differentiation is X

Capital Requirements are X

Switching costs are X

Incumbents control of

distribution channels is X

Incumbents proprietary

knowledge is X

Incumbents access to raw

materials is X

Incumbents access to

government subsidies is X

Power of Buyers Is Low When: High Low Justification

Concentration of buyers relative

to suppliers is X

Switching costs are X

Product differention of suppliers

is X

Threat of backward integration is X

Extent of buyers profits is X

Importance of the supplier's

input to the quality of the

buyer's final product is

X

Threat of Substitute Products Is

Low When: High Low Justification

Number of substitutes is X

The liklihood that consumers will

switch to a substitute X

Analyzing the Five Forces

Power of Suppliers Is Low When: High Low Justification

Concentration relative to buyer

industry is X

Availability of substitute supplies

is X

Importance of the customer to

the supplier is X

Differentiation of the supplier's

products and services is X

Switching costs of the buyer are X

Threat of forward integration is X

Intensity of Competitive Rivalry

is low When: High Low Justification

Number of competitors is X

Industry growth rate is X

Fixed costs are X

Storage costs are X

Product differentiation is X

Switching costs are X

Exit barriers are X

Strategic stakes are X