Suppliers affect corporate profitability and product competitiveness by increasing the price of input factors or reducing unit value quality. When the input factors provided by the supplier account for a large proportion of the total cost of the enterprise's products, are important to the production process, or seriously affect the quality of the product, its bargaining power is enhanced. Supplier groups with stable market position, obvious product characteristics, and convenient forward joint or integration are strong. Factors such as the degree of concentration and product standardization of suppliers in the industry will affect their influence.

Buyers affect the company's profitability by lowering prices or requiring the improvement of product and service quality. In the case of a small total number of buyers and a large number of individual purchases, a small scale of the seller's industry, a convenient replacement of sellers and a capable of achieving backward integration, the buyer has a strong bargaining power. Factors such as collective purchase and product standardization will affect the bargaining power of the buyer group.

New entrants bring new production capacity and resources, which may compete with existing companies for raw materials and market share, reducing existing companies' profitability. The degree of entry threat depends on the size of entry barriers and the response of the existing business. Barriers of entry include economies of scale, product differences, capital needs, etc. Economy of scale refers to the characteristics of the decline in unit product costs when the business scale expands. The degree of differentiation, conversion costs, technical obstacles, control of sales channels, policies and laws will all affect the difficulty of entering new entrants.

Competitive competition among enterprises in different industries due to their mutual substitutes, affecting the competitive strategies of existing enterprises. Substitutes will limit the selling price and profit potential of existing companies, forcing existing companies to improve product quality, reduce costs or highlight product characteristics. The lower the price, the better the quality, the lower the conversion cost of users, and the stronger the competitive pressure. Identifying alternatives can be made by listing alternatives. Factors that determine the amount of pressure on alternatives include the profitability of the alternatives, the business strategy of the manufacturer and the conversion cost of the buyer.

In order to gain competitive advantages, enterprises in the industry will have conflicts and confrontations in the implementation of their competitive strategies. When the industry has low barriers to entry, many competitors, mature markets, slow product demand growth, competitors adopt price reduction promotions, homogeneous products or services, low user conversion costs, significant returns on strategic actions, and high exit obstacles, etc., the industry Competition among existing companies will intensify. Enterprises can deal with competition by setting up entry barriers and other means.

1. Diversified business decision-making: It can help companies understand and control investment risks when entering new industries.

2. Market positioning analysis: Assist companies in determining market positioning and selecting competitive strategies.

3. Profit analysis assistance: clarify the key factors for maintaining the source of corporate profits and help formulate measures to improve profit margins.

4. Static analysis: Help analysts design positioning strategies, match the company's strengths and weaknesses with the industry structure, establish a market position for the company, judge the attractiveness of the competitive environment, and help the company obtain excess profits.

5. Dynamic analysis: enable analysts to formulate proactive strategies for enterprises and influence the laws of industry competition. In the development of the industry, the five forces are interdependent. Analyzing and predicting changes in forces and their impact on industry profits and corporate strength is necessary to find ways to adjust strategies.

6. Environmental analysis extension: It is an important extension of SWOT analysis, introducing industrial economic concepts into strategies, improving the accuracy of environmental analysis, and increasing the possibility of obtaining appropriate strategies.

7. Pioneer of scenario theory: emphasizes industrial evolution, lays the foundation for scenario analysis, helps analysts consider changes in strength when planning, formulate strategies to manage their roles, and improve the competitive position of enterprises.

1. There is a lack of a clear explanation of the inherent connections and mutual influences of competition models in different industries, and it does not explain the connections between industry competition and the impact on the competitive structure of other industries.

2. Without directly explaining the multiplicity of the five competitor positions, competition participants may play multiple roles in the competition model.

3. The competitor role transformation problem is not explained by the connection between competition analysis models in different industries. A competitive participant's role positioning in different industries will affect the competition results.

4. This model is static and does not analyze the dynamics of corporate competitive roles in time and space.

When enterprises apply this model to formulate competitive strategies, they must take into account both internal and external factors and be dynamically balanced. It is necessary to examine the degree of matching between your own resources and the industry, and you cannot enter unfamiliar areas based solely on the model analysis results; at the same time, you must examine the flexibility of market trends and strategies, maintain strategic flexibility, and avoid strategies falling behind market trends.

The application process includes two major steps. The first step is to collect information to confirm the characteristics of each force, check and evaluate its impact on the industry; the second step is to use relevant factors to determine the degree of impact of each force, and most of the information can be Obtained from indirect resources, important resources are used to improve the objectivity of analysis.

The threat of alternatives mainly comes from hard disk MP3 players, MP4 players and multi-functional handheld digital products. Their technological development and cost reduction will have an impact on the flash MP3 player industry. In terms of new entrant threats, the industry has low entry barriers, economies of scale barriers and conversion costs, and easy to obtain distribution channels. Although there are objective product differences, potential entrants can use consumer differences to weaken their impact. In terms of buyer power, it is unlikely that consumers will buy repeatedly, but the spread of information between groups and the oversupply market state puts pressure on enterprises. In terms of suppliers, there are few flash decoding chip suppliers and are in a state of monopoly competition, which puts great pressure on enterprises. In terms of competitive strategy intensity, there are many companies in the industry, and price competition is fierce. The barriers to exit vary depending on the size of the company. The slowdown in industry growth rate has intensified competition. The industry has gradually become a perfectly competitive market and is facing the trend of being replaced by multi-functional handheld digital products.

The competitive trend of the juice beverage industry is reflected in the broad market development, the younger consumer group, the diversified product types, and the obvious brand characteristics. There are fierce competition among existing competitors, many product categories and lack of strong brands, and small and medium-sized enterprises and large enterprises are competing fiercely. New entrants face obstacles such as economies of scale, strikeback from existing companies and funding needs. The threat of alternatives comes from other types of beverages and nine major categories of beverages, limiting the benefits of juice beverages. Purchasing negotiations have strong bargaining power, and dealers and retail terminals affect the company at different levels. On the supplier side, the supply of fruit raw materials and packaging materials affects the supplier's bargaining ability.

1. Meaning: Based on the Porter Five Forces Analysis Model, Andy Grove, former Intel President, redefines six influences of industrial competition, including the influence of existing competitors, suppliers, customers, and potential competitors. , vitality, ability, alternative ways of products or services, and the power of collaborative operators can help clarify the competitive environment of the company and define the direction of strategic innovation.

2. Main content: The influence of existing competitors is affected by factors such as the growth rate of the industry, fixed or inventory costs; the influence of suppliers depends on factors such as the number of suppliers, substitutes, etc.; customer bargaining power is affected by the quantity of purchases and the knowledge of the product. Influences of degree and other factors; potential competitors are restricted by entry barriers such as economies of scale and patent protection; threats to alternative products or services come from relative prices, conversion costs and functions, etc.; collaborative operators and enterprises support each other, but new technologies may change this relationship .

1. Meaning: Michael Porter formulated based on the Five Forces Analysis Model, which allows managers to analyze the industry's competitive structure and status from both qualitative and quantitative aspects. The purpose is to determine the key factors affecting the success or failure of a company and find out the threats to be dealt with. .

2. Application method: This model is a statistical table, with five competitive forces and related statements listed on the left, and the right is for enterprise decision-makers to score based on their attitudes, and calculate the final score of each key factor through formulas. The score reflects the success of the relevant person for the company. The importance of the company is for reference by senior managers.