Group 1 (Whirlpool, GE, Electrolux)
·
Threats of new entrants: Low
Plants and Facilities
require heavy investments
·
Rivalry among existing firms: High
Competition in terms of
innovation, customer-oriented features
·
Threat of Substitute Products or Services: Low
There are substitutes
available; but they are not much effective on this industry.
·
Bargaining Power of Buyers: High
Buyers prefer well-known
brands to be placed in their stores
·
Bargaining Power of Suppliers: Low
Since the companies are
market leaders; any of the suppliers will love to supply these companies.
Group 2
(Maytag)
·
Threats of new entrants: Low
Fierce Competition
·
Rivalry among existing firms: High
They have been competing for
years
·
Threat of Substitute Products or Services: Low
The presence of substitutes
is not highly affective.
·
Bargaining Power of Buyers: High
Buyers are more interested
in purchasing well- known brands.
·
Bargaining Power of Suppliers: Low
Since the companies have
been in this industry for years they have options.
Group 3
(Siemens, Haier)
·
Threats of new entrants: Low
They have enough and
specialized resources.
·
Rivalry among existing firms: Medium
They are global competitors.
·
Threat of Substitute Products or Services: Low
There is not much affect as
far as substitute products are concerned.
·
Bargaining Power of Buyers: High
Buyers are brand-conscious.
·
Bargaining Power of Suppliers: High
Suppliers can dictate their
terms and conditions.
Group 4
(Sub-Zero Freezer, Viking Range)
·
Threats of new entrants: High
The new entrants can capture
part of the market share.
·
Rivalry among existing firms: Low
They don’t have a
competitive edge over market leaders but they are competing with each others.
·
Threat of Substitute Products or Services: Low
There is not much affect as
far as substitute products are concerned.
·
Bargaining Power of Buyers: High
Buyers are brand-conscious.
·
Bargaining Power of Suppliers: High
Suppliers can dictate terms
and conditions.
