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power
of
distributors
Rivalry
among
A
distributors
bargaining
exisGng
posiGon
is
strong
when:
compeGtors
It
can
control
customers
access
to
a
parGcular
Five
Threat
of
Threats
of
organizaGons
goods
and
subsGtute
new
services
products
entrants
It
can
threaten
an
organizaGon
by
demanding
Forces
it
reduce
the
price
of
its
goods
and
services
Model
E.g.
Park&Shop,
Welcome,
Bargaining
Bargaining
power
of
power
of
759
customers
suppliers
45 46
CompeGGve
Forces
What
is
the
Five
Forces
Model?
Poten1al
for
entry
Will
it
be
easy
for
compe1tors
to
join
the
industry?
(Threats
of
new
entrants)
The
lower
the
barriers
to
entry,
the
higher
the
threats
if
new
entrants
The
ve
forces
model
Easy
entry
leads
to
lower
prices
and
prots
represent
the
potenGal
Power
of
suppliers
How
much
bargaining
power
do
suppliers
have?
(Bargaining
power
of
If
there
are
only
a
few
suppliers
of
important
items,
supply
costs
threats
in
the
external
suppliers)
rise
environment
Power
of
customers
How
much
bargaining
power
do
buyers
(customers)
have?
(Bargaining
power
of
It
tells
how
much
inuence
buyers
have
over
organizaGons
in
an
buyers)
industry
The
ve
forces
shows
If
there
are
only
a
few
large
customers,
they
can
bargain
down
prices
how
much
prot
Subs1tutes
Will
it
be
likely
for
our
products
to
be
subs1tuted
by
the
organizaGons
compeGng
(Threat
of
subsGtutes)
compe1tors
products?
SomeGmes
an
organizaGons
prot
in
the
same
industry
are
drops
may
due
to
overall
decline
of
More
available
subsGtutes
tend
to
drive
down
prices
and
prots
expected
to
make:
how
protability
of
the
whole
industry
Level
of
rivalry
How
intense
is
the
compe11on
among
the
exis1ng
(Current
rivalry)
organiza1ons
in
an
industry?
aNrac1ve
is
that
Will
there
be
many
potenGal
compeGtors?
industry?
47 Fierce
compeGGon
drives
down
prices
and
prots
48
12