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Competition from rivals
Highly competitive since products are not differentiated and have high fixed costs as well as exit barriers. There is also competition from the cheaper imports as well as the cyclicity of demand.
4. Bargaining power of buyers
Price sensitive market due to no product differentiation.
5. Bargaining power of suppliers
Unionised labour leading to high bargaining power of labour supply. Cost competition among steel manufacturers also leads to high bargaining power of suppliers.
Therefore, the steel industry is NOT attractive.
Sources of competitive advantage in the steel industry
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