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This threat is especially high when
Insights to Develop • What forces are at work? • What drivers most influence supplier competitiveness in this segment?
• What is the profile of a successful competitor in this market?
• How can you use supply market dynamics to its advantage?
4
?? The buying industry has a higher profitability than the supplying industry
?? Forward integration provides economies of scale for the supplier
?? The buying industry hinders the supplying industry in their development (e.g. reluctance to accept new releases of products)
?? The buying industry has low barriers to entry...
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