2013年7月30日星期二

Five forces competitive model with existing industry structure


An industry structure is composed of five competitive forces jointly determined. This five competitive forklift jacks are: enter threat threat of substitution, bargaining power customers, suppliers, price negotiation and competition among existing competitors. Let's analyze the existing competitive forces crane industry: First, enter the threats: For the current market, the threshold is low, new entrants into easier; Second, the threat of substitution: other lifting machinery products due to its structure and use the occasion different, gantry crane is not a threat; Third, customer bargaining power: industry is still in a buyer's market, the customer's bargaining ability; four, supplier bargaining power: Because the client side is often specified parts, supply-side bargaining ability; five industry competitors: competitors include both well-known within the industry nationwide each crane manufacturers, local businesses, including the introduction of foreign technology, as well as direct access to the domestic foreign joint venture enterprise.
Through the above five force model analysis, we can conclude that: In the new round of competition, or will the winning companies should have such qualities: one, the introduction of advanced and mature technology and can quickly industrialization; two , R & D ability, high-tech products.

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