logo image

Chemical Industry Analysis Using Porter’s Five Force Model

Bargaining power of the buyers remains moderate, and there is less chances in increase or decrease in bargaining power, the factors affecting bargaining power are: ) Chemicals are the major inputs in the company. ) Switching cost of the suppliers are more, because of long term agreements. 3) The chemical products are not highly differentiated. 4) The chemical industries have more end users. Threat for substitute remains weak, and in long run varies with the demand, the major factors affecting the substitutes are: 1) The buyers need the same type of chemicals for their usage. 2) Changing chemical composition involves more R&D costs. ) Substitutes for the chemicals are rare.

The industrial rivals in the chemical industry is high, and have more tendency to increase, reasons beyond the high rivals are: 1) High competition in gaining market share. 2) Majority of the players are globally influenced 3) Economics of scale is high, so more competition in pricing strategy 4) Fixed costs are high, maintenance and existing cost are high. Chemical Industry Analysis Using Porter’s Five Force Model By Instrumentality

Read full document

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
×
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register
Signup & Access Essays

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
|
Complete Buyer Protection
|
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy