PORTER 5 FORCES MODEL (1)

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
-suppliers have power to obtain their
desired profits

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
-strategies and tactics of competitors
-similar products and same specifications
-economic environment