PORTERS 5 FORCES MODEL

   The diagram above shows that the five forces model that contain threat of new entrant, bargaining power of customer, threat of substitutes, bargaining power of suppliers and rivalry among competitors.

   Firstly, buyer power, buyer power is the ability of buyers to affect the price they pay for the items, meaning that customer are the buyer. buyer has many substitute product that they can choose and this is an advantages for customer to choose what the best product that they can buy it. so that for supplier they have to produce an attractive product to attract customer and customer will satisfied with their product for an example is telecommunication company, such as celcom and maxis. customer has rights to choose the best telecommunication company that give goods service to them.

  secondly is supplier power, its consist of all parties involved, directly or indirectly in obtaining raw material or a product. supplier power is the suppliers ability to influence the price they charge for supplies such as material, labor and services. for example is KFC stand for Kentucky fried chicken, the main raw material is chicken, they has to get supplier for them to supply the  fresh chicken, if supplier do not supply chicken their business will no operated. the supplier power will high at, when buyers have a few choices of whom to buy chicken too supply for them. besides, the low is when their choices are many, means that if to many supplier buyer has many choice to buy from the best supplier.

   next, threat of substitutes product and services it becomes high when there are many alternative to a product or services and low when  there are few alternatives from which to choose. for an example to travel in country there are many transportation that we can choose such as air plane, buses, train and others. besides in new era many product smartphone that customer substitutes. for example for a product is android such as samsung and for smartphone such as blackberry. 

   besides, threats of new entrants. when to many competitors produce the same product or enter the market and it will barriers to enter the market or to compete with others company. if there were has many same product in the market they will might faces difficulties to compete with others competitors. for example, nowadays to many smartphone in market such as blackberry, samsung, apples and others. this company will face difficulties to compete with each others. every product has their own speciality and customer will buy if the product are satisfied them or fulfil their criteria 

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   Rivalry among existing competitors.there will high when competition is fierce in a market and low when competitors are more complacent. although competitions is always more intense in some industries that in others. the overall trends is toward increase competition in almost every industry.