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Essay's paper info
| Topic: |
Business
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| 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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General points of the essay
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