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PORTER 5 FORCES MODEL (1)

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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

(2)

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

Referensi

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