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Essay Details:
Essay text:
(1.3)
The threat of new competitors lowers the profitability of the market
Customers bargaining power:
It is very hard for the customers to join forces and fight for their interests. (2.1)
According to the modern way of life the need for computer in every work place and home is high which decreases even more the power of the customers. However, the switching costs are low (2.2)
In general the customer bargaining power is low and therefore it raises the potential of market's profitability. Though, most of the companies provide "buy-backs" and price protection that lessens the chance to cash on moderately strong manufacturers position...
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