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- Buyer Power is high when the customer have many choices of whom to buy. To reduce it, he organization must make it more attractive to buy from from the company, not from the competitors. product example is fast food industry. Customer have Mc Donalds, KFC, Pizza Hut, Domino Pizza, and many more.
- Supplier Power is high when customer have few choices of whom to buy from. To reduce it, Business to Business marketplace is the way. Reverse auction is the way to reduce because the supplier will bid to give the lower price to win the deal. Example, box supplier to the Domino's Pizza.
- Threat of Substitute Products is high when the customer have many alternatives to a product or service. Example is Coke vs Pepsi.
- Threat of New Entrants is high when it is easy for new competitors to enter market. Example product is a new system of paying bills which is through online, like online banking, online payment.
- Rivalry Among Existence Competitors is high when competition in market. Example of product is Malaysia Airlines vs Air Asia. Air Asia give a very low fares to fly. Well, now everyone can fly.
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