Five Force

Appendix - Porter five forces model: Competitive situation of printing industry

Threat of new entrants
|Factors (affecting the threat of new entrants) |Analysis |Threat Rating of New |
| | |Entrants |
|Economies of scale: |The printing product is usually required large scale of production, so |HIGH |
|Whether large-scale production is necessary for |the cost will be reduced. | |
|cost-efficiency. |The material cost of printing is not really expensive expect the | |
| |machine and technology. | |
|Proprietary product differences: |Printing products are easily replicated and not unique and |HIGH |
|Whether existing products are unique and |differentiation. | |
|difficult to replicate. |The excellent service is not required in the manufactory industry. | |
|Brand identity: |Many choices in the printing industry, well brand identity is not |LOW |
|The existence of established brands. |easily built up. | |
|Buyer/customer switching costs: |Long term relationship between the organization and customer. Customer |LOW |
|The difficulty of switching from an existing |is not easy to switch into new supplier