Five Forces
6. Five forces model
The Porter’s five forces model is applied in order to see how attractive the North German market is for Vanclaes. The market potential for Vanclaes will be clear in the conclusion of this model.
Supplier power
There are lots of different suppliers in the Netherlands and Germany. This means that the various materials that are used to build a boat trailer are very easy to get. What this also means is that the power of the suppliers is not so big. All the different suppliers compete with each other, so it isn’t easy for a supplier to drive up the price. Another factor that contributes to this factor is that the materials that the suppliers supply are not very unique. Therefore the power of the suppliers is very low and it is very easy for Vanclaes to change from supplier.
Buyer power
Gross monthly earnings for Germany are 3,449 Euro per person at 2013.
States
Average Gross Monthly Earnings in 2012 (EUR€) North Rhine-Westphalia
3,932
Lower Saxony
2,825
Hamburg
4,289
Schleswig-Holstein
3,431
Brandenburg
2,928
Mecklenburg-Vorpommern
2,821
Bremen
3,848
Bremen, Hamburg and North Rhine-Westphalia are below the average of Germany’s average gross monthly earnings. As a premium class boat trailer VanClaes can focus on these 3 regions.
Competitive rivalry
The number of competitors in the North German market is 9 but only a few of them can offer the similar quality to Vanclaes but the product of Vanclaes is very unique there are no other competitors that can deliver the same quality. Because no one else is doing what Vanclaes is doing the competitive rivalry in the premium price class is not very high. On the other hand, the power of the competitive rivalry in the lower price segment is very strong. This can be explained by the fact that almost every competitor is producing basic trailers. The second hand market also contributes to the power of Vanclaes rivalry.
Threat of substitution
There are no
The Porter’s five forces model is applied in order to see how attractive the North German market is for Vanclaes. The market potential for Vanclaes will be clear in the conclusion of this model.
Supplier power
There are lots of different suppliers in the Netherlands and Germany. This means that the various materials that are used to build a boat trailer are very easy to get. What this also means is that the power of the suppliers is not so big. All the different suppliers compete with each other, so it isn’t easy for a supplier to drive up the price. Another factor that contributes to this factor is that the materials that the suppliers supply are not very unique. Therefore the power of the suppliers is very low and it is very easy for Vanclaes to change from supplier.
Buyer power
Gross monthly earnings for Germany are 3,449 Euro per person at 2013.
States
Average Gross Monthly Earnings in 2012 (EUR€) North Rhine-Westphalia
3,932
Lower Saxony
2,825
Hamburg
4,289
Schleswig-Holstein
3,431
Brandenburg
2,928
Mecklenburg-Vorpommern
2,821
Bremen
3,848
Bremen, Hamburg and North Rhine-Westphalia are below the average of Germany’s average gross monthly earnings. As a premium class boat trailer VanClaes can focus on these 3 regions.
Competitive rivalry
The number of competitors in the North German market is 9 but only a few of them can offer the similar quality to Vanclaes but the product of Vanclaes is very unique there are no other competitors that can deliver the same quality. Because no one else is doing what Vanclaes is doing the competitive rivalry in the premium price class is not very high. On the other hand, the power of the competitive rivalry in the lower price segment is very strong. This can be explained by the fact that almost every competitor is producing basic trailers. The second hand market also contributes to the power of Vanclaes rivalry.
Threat of substitution
There are no