1 The power of suppliers
The supplier is considered the provider number and size: the number of suppliers when the decision will lead to competitive pressure is high, and therefore it rights negotiations between providers for the industry in general and businesses in particular. Therefore the market will only have a few suppliers of large scale pressure which implicates the current competition. that would equally affect the whole of the manufacturing operations of the business segment of the industry today
2 Ability replacement products supplier: it shows the likely replace standard product materials suppliers and also the cost of the conversion provider.
The provider of information: the information can say today is always an important factor to lead to the promotion of the growth in trade. and besides it also provides information that affects quite a high level until the selection of providers of resources for entrepreneurs
So for all sectors which providers are creating pressure they cause it shows that they have the scale, as well as the resources to own the rare and leads to collections of vendors always give their products a large input power conditioning That suggests a very few have the right to negotiate between the business together, but on the other hand they always have better numbers because they are disorganized
3 power of customers:
Customers are seen as a big pressure for the business because it directly affects the business and production activities in the industrial sector of the
customers are divided into two main groups:
retail customers and suppliers, distributors
can be said two groups of businesses they are always attentive and concerned because it put pressure on prices, as well as the quality of products and services sold and they will control the competition between in the industrial sector it was through the purchase or not purchase decisions.
Particularly in terms of the enterprise: the introduction of its products into the distribution system of the commercial centers, supermarkets, it always have to face the difficult problem instead of the pressure not only on price but also on quality. Also shows, most of Vietnam such products as export shoes, textiles, handicrafts, it is difficult to penetrate major markets like the US, EU, Australia, England, ... .. and if not through the distribution system.
4. Competitive pressure from potential rivals:
It can see the potential competitors are now often not available in the industry, but it may affect the industry in the future is to lai.Thuong Potential players are always more or less, and that caused their pressure on the industry will lead to a strong or weak:
+ To increase the attractiveness of the sector: the important factor is expressed through the Indicators such as rate of return, the number of customers consume, between enterprises in the industry ...
+ The barriers to entry: to see the elements that make up an industry to join harder Besides more expensive, the capital that commercial factors such as distribution systems, branding, customer ..., the elements that make up the difference out of materials, with the invention, resources force, and the government protected ... 5. Competitive pressure from substitute products: Products that replace these services can meet the needs for products with service in the industry. It is considered the major problem of alternative products is the ability to meet the needs compared with products in the industry, let out another factor, such as price, product quality with the elements Other necessary to make up the cultural environment, politics, technology will also lead to the influence of substitute products. 6. competitive pressures and internal pressures: From the business enterprise sector will directly compete with each other and will put pressure on the industry today, to create a competitive intensity. Not only is one sector should have the following essential elements will create fierce competition between rival :.
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