1. Frameworks For Managing Industry Competition There are 5 forces frameworks for managing industry competition. 1. Intensity of rivalry among competitors. - Company needs to know their rivalry so well. - Importance: a) So that company can have control on the price of the product. b) To reduce price wars c) Reduce cost of doing business etc. marketing

2. Frameworks For Managing Industry Competition 2. Threats of potential entry a) Know-how b) Proprietary technology c) good access to raw materials d) real-estate location 3. Substitute products - The substitute product must fulfill consumer’s necessities and needs. - Example: Cloud 9 produce chocolate. The substitute product produce by Cloud 9 would be the candy

3. Frameworks For Managing Industry Competition 4. Buyer - Bargaining power of buyers - Buyers has the rights for strike - Buyer can influence the decrease in price of the goods - Products produce is not cost savings and add value for buyers 5. Supplier - Power of supplier will increase if it produce a unique and different product - Power of a first mover - Can increase the price as they wish