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. it will also affect equally to all the activities of business and production segment of the industry today
2 Ability replacement products supplier: it shows the likely substitution between product materials suppliers and also the cost of switching suppliers for.
The provision of information: the information can say today is always an important factor to lead to the promotion of commercial developments. 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 ownership of resources and rare collections to providers leads always to its products a large input of energy which That suggests a very few have the right to hold business talks with each other, but on the other hand they always have the upper hand because it's hovering 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, deliverables
May 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 fierce competition keeps in industrial sectors through buying things, or not buy decision.
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 such products nư Vietnam footwear exports, textiles, handicrafts, it is difficult to penetrate major markets like the US, EU, Australia, England, ... .. and when kh6ng 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 this nghiepngay industry, to create a competitive intensity. Do not spend the sector should have the following essential elements will create fierce competition between rival :.
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