Generally speaking, upstream suppliers that meet the following conditions will have relatively strong bargaining power: High supplier concentration: In an industry where a few executive list suppliers dominate the market, suppliers have higher bargaining power than buyers, and monopolies have strong bargaining power. High switching executive list costs and dependencies: Buyers who switch from one supplier to another pay or suffer high losses or find it difficult to find a corresponding competitive alternative.
Technical threshold and technical patents: suppliers have technical advantages in a certain field and occupy more core technology patents executive list in the field; Competitive threat of suppliers: suppliers can easily implement integration (the ability to extend the industry chain vertically), and when the buyer is an intermediary, suppliers can cut off their business, so executive list their bargaining power is also higher. 3. Bargaining power of buyers Definition: Buyers refer to the direct customers of an enterprise, not necessarily the bargaining power of final customers to purchase goods.
If buyers have enough bargaining executive list power, they can offer lower prices or insist on expensive improvements to a product or service. Porter's five forces model does not analyze a product, but a specific product analysis is a research strategy. Porter's five forces model indicates that there are five forces in the industry that determine the scale and degree of executive list competition, and these five forces together affect the attractiveness of the industry and the competitive strategy decision-making of existing companies.