The five-force model analysis method was put forward by Michael Porter in the early 1980s. Used to analyze the competitive strategy, which can effectively analyze the competitive environment of customers.

The five-force model identifies five main sources of competition, namely, the bargaining power of suppliers, the bargaining power of buyers, the threat of potential entrants, the threat of substitutes and the competition among companies in the same industry, as shown in the following figure:

Five forces affecting industrial competition

Five forces analysis

The threat of potential entrants: it may be a newly established enterprise, or it may be an enterprise that has engaged in other industries and diversified business strategies. Potential entrants will bring new production capacity and demand a certain market share.

Competition among existing enterprises: the competition among existing enterprises refers to the competitive relationship and degree among enterprises in the industry.

Five forces analysis

Bargaining power of suppliers: suppliers often put pressure on downstream enterprises in the industrial chain by raising prices or lowering quality and service to extract as much industrial profits as possible.

Buyer's bargaining power: In order to reduce prices and improve product quality and service level, buyers always bargain with enterprises in the industry, which makes enterprises in the industry compete with each other and kill each other, resulting in a decline in industry profits.

Threat of substitutes: substitutes refer to products with the same or similar functions as the products of this enterprise.

Analysis of Five Forces Competition in Furniture Industry

I. Competition within the industry From the perspective of the industry development cycle, with the rapid development of China's furniture industry for more than ten years, the furniture industry is currently in the early stage of growth, which shows that the furniture industry has formed a certain industrial pattern and has a certain scale, but the overall level is still relatively low, the scale of enterprises is generally small, the industrial pattern is still unstable, and furniture production is in a wide range of adjustments. However, the development speed of the industry is relatively rapid, and there is still huge room for development. From the perspective of industrial market structure, China furniture production enterprises are generally small and medium-sized enterprises, and the market concentration is very low. One of the few furniture owners' producing areas in large-scale furniture production enterprises has begun to show a homogenization trend in processing technology and product categories. There are few well-known brand enterprises and many middle and low-grade products; The design and development ability is generally weak, and the marketing level is low; The export of furniture products is relatively concentrated in this area. At present, it has cost advantage and certain competitive advantage in the international market. Answer time: 20 10-3-2 1 08:57 | Report.

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