6.4

• OLIGOPOLY


  dominated by a small number of firms.
• 5 FORCES OF FRAMEWORK

  1. internal rivalry
  2. supplier power
  3. entry
  4. buyer power
  5. substitutes and complements
• 5 CRITICAL DIMENSIONS:

  1. competitive rivalry
  2. supplier power
  3. buyer power
  4. threat of substitution
  5. threat of new entrants
• COMPETITIVE RIVALRY


  evaluates the number of existing players and how established they are in the industry. 
• CUTTHROAT COMPETITION


  lower price and invest in expensive marketing campaigns.
• SUPPLIER POWER


  provide essential ingredients.
• SUPPLIER POWER 


  when only a few suppliers can provide a product, they can dictate terms and pressure businesses to accept higher prices. 
• BUYER POWER


  the influence customers wield over a business.
• BUYER POWER


  if an industry have strong of this, they can demand lower prices.
• BUYER POWER


  wield more power in a market with fewer customers and more sellers.
• THREAT OF SUBSTITUTION


  customers might switch to different products or services.
• THREAT OF NEW ENTRANTS


  how easy for new competitor to enter market and threaten others?
• THREAT OF NEW ENTRANTS 


  high barriers such as high starting capital costs and a small pool of suppliers can deter new rivals from early success.