Online dating five forces


19-Apr-2020 01:02

There may be multiple buyer segments in a given industry with different levels of power. The threat of a substitute is high if it offers an attractive price-performance trade-off versus the industry’s product, especially if the buyer’s cost of switching to the substitute is low.

Powerful customers can use their clout to force prices down or demand more service at existing prices, thus capturing more value for themselves.The threat of entry also depends on the capabilities of the likely potential entrants.If there are well established companies in the industry operating in other geographic regions, for example, the threat of entry rises.The threat of new entrants into an industry can force current players to keep prices down and spend more to retain customers.

Actually, entry brings new capacity and pressure on prices and costs.This specifically deals with the ability customers have to drive prices down.



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