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Essay's paper info
Topic: Business
Number of pages / Number of words: 9 / 2481
Essay's paper body

Hence, it is unlikely that any newcomer is able to achieve economies of scale in production and distribution. The existing intensity of rivalry between competitors builds up a high barrier to new entrants.

Bargaining Power of Buyers High

? Switching costs for alternative substitutes are moderate (there is considerably high involvement for buyers to choose between alternatives), there are many varieties in this industry for customers to choose from...


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Moreover, there are many products (including substitutes) that could provide the same benefits (usage) the buyers are looking for and cars are long lasting products.

Bargaining Power of Suppliers Low

? The raw materials used to manufacture cars are readily available from many suppliers such as shock absorber, sunroofs, spoilers, alloyed wheels, etc...


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