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Environment by Mind Map: Environment

1. Bargaining power of buyer

1.1. high

1.1.1. few availability of seller information

1.1.2. many alternative available

1.1.3. only a few buyer with significant market share

1.1.4. large number of buyers act with each other

1.1.4.1. collective buying

2. General

3. Industrial

3.1. Michael Porter's five forces

3.1.1. Barrier of new entrance

3.1.1.1. High Threat

3.1.1.1.1. Low capital Requirements

3.1.1.1.2. common technology

3.1.1.1.3. little brand loyalty

3.1.1.1.4. Access to distribution channels

3.1.1.2. Low threat

3.1.1.2.1. Patented

3.1.1.2.2. Restricted distribution channels

3.1.1.2.3. Difficulty in brand switching

3.1.1.2.4. high capital requirements

3.1.2. Bargaining power of seller

3.1.2.1. high

3.1.2.1.1. supplier concentrated

3.1.2.1.2. significant cost to switch suppliers

3.1.2.1.3. strong distribution channel

3.1.2.1.4. many substitutes available

3.1.2.1.5. high differentiation of inputs

3.1.3. Threats of substitue

3.1.3.1. high

3.1.3.1.1. relative price performance of substitute is low

3.1.3.1.2. ease of substitution

3.1.3.1.3. high buyer propensity to substitute

3.1.4. Rivalry among existing firms

3.1.4.1. Larger number of firms

3.1.4.2. slow market growth that causes firms to fight for market share

3.1.4.3. high fixed cost

3.1.4.3.1. lease, salary

3.1.4.4. high exit barriers (e.g not easy to sell machines, equipment etc)

3.1.4.5. Low switching costs

3.1.4.5.1. time & training cost