Essay About Different Options And Important Point

Five Forces Analysis
five forces analysis The bargaining power of buyers is increasing. Vietnamese consumers are more and more aware of
the different options they have in buying lighting products. This means that they have more choice in
different products, which increases their influence over a company. For PEV this means that they
have to take into account that buyers are more informed, and will be aware of the different brands
of lamps they can buy. An important point in this was mentioned by the retailers: they think PEV
should educate the buyers. According to them, Philips is a better quality product than the
competition, but buyers need to know this: and since buyers are getting better informed about
different products, this education of buyers is an important point.
A second important point in the bargaining power of buyers is the target group of the business
A second important point in the bargaining power of buyers is the target group of the business. If a
company relies on one or two large customer groups for its sales, the bargaining power of buyers is
higher (Kotler, 2003). At the moment this is the case for PEV: because of the high quality product
with higher price, Philips aims at target group with higher purchasing power.
Bargaining power of suppliers
This forms no threat for PEV: the supply of the subcomponents needed for the fabricationof the
products is all coming from Philips factories in other countries (for