Table of Content

Competitive Rivalry

How many competitors are there in your business? What is their product or quality of their product? If market involves many firms, it makes costumer easy to shift from one supplier to another one due to high competition. It is hard to sustain for business owner in such competitive without having any extra advantage.

Threat of Substitution

If your competitors have similar product or service, it can also threat your business. If you face with such problem, it refers that you are price taker since you should take into account of competitors’ service. To illustrate, if you sell stationaries, it is difficult to sell your product in higher price than others as you lose your potential customers.