To better understand the exercise, let's look at two examples from well-known companies.
Starbucks
Customer power: Moderate, because although there are cheaper options, customers pay for the experience.
Supplier power: low, because the brand avoids monopoly by purchasing from different suppliers.
Threat of new competitors: high, because every day there are more companies with similar experiences.
Threat of new substitute products: high, your products can be easily replicated and substituted.
Competitor Rivalry: Starbucks has a very good position in the market, but it should not underestimate similar brands.
Netflix
low, because the consumer has no decision-making power over prices, as all streaming platforms have similar costs.
Power of providers: high, because there are few and the Internet is full of all types of content.
Threat of new competitors: Low, because a large bangladesh number data mount of capital is required to create a streaming platform, without taking into account the preferences of consumers who already have Netflix at the top of their mind.
Threat of substitute products: Moderate, because Netflix has similar prices to its competitors, but a decisive point could be the content catalogue.
Rivalry between competitors: There is a real war between streaming platforms and many want the same position.