PORTER 5 FORCES MODEL
Threats of Substitute Product (High)-same products can get from Amazon, Walmart, Costco or Radio Shack
-No product differentiation -Amazon’s app
Bargaining Power of Buyers (High)
-switching cost close to zero -other sources
-trend of decrease price in consumer electronic industry & increase in market saturation
Bargaining Power of Suppliers (High)
-merchandize supply from limited number of suppliers
-65 percent of products from just 20 suppliers
PORTER 5 FORCES MODEL
Threats of New Entrants (High)
-economic downturn factor
-new competitors (Amazon, Walmart, Costco)
Rivalry among Existing Competitors (High)
-compete against unfamiliar rival on unknown terrain