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A starting point to analysing the industry is to look at competitive rivalry. If entry to an industry is easy then competitive rivalry will likely to be high. If it is easy for customers to move to substitute products for example from coke to water then again rivalry will be high. Generally competitive rivalry will be high if:
? There is little differentiation between the products sold between customers.
? Competitors are approximately the same size of each other.
? If the competitors all have similar strategies.
? It is costly to leave the industry hence they fight to just stay in ( exit barriers)
Power of suppliers
Suppliers are also essential for the success of an organisation...
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