What is the threat of new entry, threat of substitutes, bargaining power of suppliers, bargaining power of buyers, and competitive rivalry?
Help im stuck, any useful sites relating this to bmw would be of get help.
Thanks
Using Porters five forces model for BMW .........?microsoft
It's a college level management/marketing class question.
Here you go:
Threat of New Entrants - Very Low
In order to enter the automotive market a huge amount of capital is required. In addition, an entering firm would need to have a tremendous amount of tacit and explicit knowledge to design and manufacture products.
Threat of Substitutes - Medium
Available substitutes include public transportation such as buses, trains, boats, and aircraft. In addition, consumers can use other conventional means of transportation such as bicycling or walking.
Power of Suppliers - Medium
Some suppliers are smaller and as such do not have that much power over the pricing and distribution of their products. However, there are not that many small parts manufacturers in this market and therefore, the majority of suppliers to major automotive makers are medium to large businesses. As a result they have some flex in determining product pricing, delivery, and distribution.
Power of Buyers - Medium
While buyers are individuals and are not grouped together, they still have an immense amount of information available to them regarding the pricing and cost to manufacture a BMW. As a result, buyers do have some leverage in being able to negotiate a purchasing price from BMW.
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