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Describe the level of competition within your industry. Include details about:
Example Entry: "The industry is highly competitive with several strong players. Competitors frequently innovate and launch new products. There is intense price competition, and companies heavily invest in marketing to capture market share. The market is mature with slow growth, leading to aggressive tactics to gain incremental sales." | Assess the likelihood that customers will switch to alternative products or services. Consider:
Example Entry: "Several substitutes are available, offering similar benefits at competitive prices. For instance, customers can switch to these alternatives if they perceive better value or lower costs. The high innovation rate in the substitute market increases this threat." | Analyze the potential for new competitors to enter your market. Focus on:
Example Entry: "The market has moderate barriers to entry, including significant initial investment and strong brand loyalty among existing customers. However, the high industry growth rate attracts new entrants, posing a continual threat." | Evaluate how much power suppliers have over your business. Include information about:
Example Entry: "Suppliers have moderate power due to limited alternatives and high switching costs. However, our business represents a significant portion of their sales, which somewhat balances their power. Some suppliers are also considering forward integration, increasing their leverage." | Assess how much influence customers have over your business. Consider:
Example Entry: "Customers have high bargaining power due to many alternative products available and low switching costs. They are very price-sensitive and demand high quality and service. Some larger customers are exploring backward integration to reduce dependency on suppliers." |
NOTES: Enter your notes here. |