Since no industry has been mentioned, I am taking the textile
industry of Turkey and the Porter’s five force analysis for the
same is as below:
- Threats of New entrants: Its very high as
entering in a textile industry is a lot easier in comparison of
other manufacturing industries.
- Bargaining power of suppliers: Its weak as
there are lot many suppliers in the market. The customers are in
such a good situation where they can put their own terms on the
suppliers and put them against each other, which lead to decrease
in prices for suppliers.
- Bargaining power of customers: Its strong as
there are many manufacturers exist in market and customers have the
option to choose the one whom he thinks getting the best deal, in
terms of quality and price.
- Barrier of substitute products: Its weak as
there can’t be a substitute of the apparel. It can be modified with
latest trends, but can’t be replaced completely.
- Competitive rivalry: Its high because of tough
competition in market, where more than thousand manufacturers are
there in Turkish market, consists of family owned, small and medium
sized businesses.