Briefly define the bargaining power of buyers

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Reference no: EM13738684

External Environmental Analysis

Economic Segment

Explain what the economic segment of the general environment is.

What are the underlying factors that constitute this segment? Which factors are more relevant to and more influential for the case company's industry? How do those factors change? Describe the potential impact of such trends. Conclude this section by summarizing the important trends, notable opportunities and threats, and possible driving forces resulting from this segment of the general environment.
Some of the underlying factors of this segment include (but are not limited to):

• Inflation and interest rates
• Unemployment rate
• GDP (and its growth rate)
• Saving rates
• Trade deficit/surplus
• Exchange rates

• Physical Segment

Explain what the physical segment of the general environment is. What are the underlying factors that constitute this segment? Which factors are more relevant to and more influential for the case company's industry? How do those factors change? Describe the potential impact of such trends. Conclude this section by summarizing the important trends, notable opportunities and threats, and possible driving forces resulting from this segment of the general environment.

Some of the underlying factors of this segment include (but are not limited to):

- Availability and level of natural resources
- Pollution rates of air, land, and water
- Energy reserves and consumption

• Industry Dominant Economic Features

Describe the economic characteristics that distinguish this industry from others. You can find examples of industries' dominant economic features

• Five Forces Analysis

Briefly explain the five force model and its purpose

• Power of Substitute Products

Briefly define the threat of substitutes and identify the substitute product/services for this industry. List the major underlying factors of this force
Using data show how each factor applies to this industry.

Conclude by assessing the strength of this force, explaining its implication for the profitability of the industry, and identifying the related opportunities and/or threats.

• Power of Buyers

Briefly define the bargaining power of buyers and identify the buyers in this particular industry (What type of companies or individuals buy from this industry?). List the major underlying factors of this force (see chapter 3 of the textbook for the detailed list). Using data show how each factor applies to this industry.

Conclude by assessing the strength of this force, explaining its implication for the profitability of the industry, and identifying the related opportunities and/or threats.

Reference no: EM13738684

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