five force models
Topics: Competition, Competitor analysis / Pages: 5 (1011 words) / Published: Oct 26th, 2013

In any industry, five competitive forces dictate the rules of competition. Together, these fie forces determine industry attractiveness and profitability, which managers assess using these five factors:
Thereat of new entrants- how likely is it that new competitors will come into the industry?
1.Capital has been involved. Some diversification enterprises will look to invest in daily chemical industry: Wine giant Wuliangye into the daily chemical, launched the "Silk posture" brand; Wahaha Group, children's cosmetics; health pharmaceutical and Ji'nan Dongfeng pharmaceutical joint development of new skin products; pharmaceutical enterprises in their professional background in chemical industry is particularly attract sb.'s attention.
2, has the experience and the strength of dealers started to build their own brands, such as nine Xin group to create the "mite Ting" brand.
3, some daily chemical industry practitioners want to have their own brand.
4, part of the technology inventor or patent holders, to set up our own factory. The main entry way: the strength of the enterprises to invest in the development of new products, to create a new brand; some enterprises powerful alliances, joint development of new brand; enterprise or individual production funds weaker(OEM).
(Two) entry barriers
1, economy of scale
Because of the production process and equipment of chemical products is relatively simple, with daily chemical industry competition, the emergence of a large number of professional OEM manufacturers reduce the minimum efficient scale chemical industry, also lowered the threshold for the potential entrants.
2, differences
The new entrants, the difference has two meanings: first is the product differentiation, in the daily chemical products homogenization is increasingly evident today, the difference will be the new entrants to the hands of a weapon; the second is the brand differentiation, consumers increasingly mature brand awareness has become a big

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