(2)

What is the bargaining power of buyers?

Current trends in customer environment
Few large General
customers to Changes in the number and environment
buy industrys types of customers or in
outputs
customers tastes and
Bargaining
needs result in Customer-
power of Task
[higher]
opportuniGes and threats.
customers Customers can environment
[lower] prots
drive [up]
for companies
[down] the Forces in the general
in that
output price Threats OpportuniGes
industry environment will impact the
customer-task environment
(note: think about the inter-related
[cheap] relaGonships)
[expensive]
outputs
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(3) CompeGtors in task environment Many exisGng

compeGtors and
intense rivalry
in an industry
Analyze of compeGtors in However, if an industry has
task environment is consist weak compeGtors or it is
of: dicult for potenGal (new)
1. exis1ng compeGtors and compeGtors to enter into [higher] [lower] Rivalry
[more] [less]
the industry (i.e. high prots for among
2. poten1al compeGtors companies in
price
barriers of entry), then it is exis;ng compeGGons
Both groups represent that industry
an opportunity for exisGng compe;tors
threats to an organizaGon players in that industry to
enjoy high protability
Prices of
outputs will
[fall] [increase]

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