PORTER’s FIVE FORCES:
In order to analyse the overall competitiveness of the lawn mowers industry, porter’s five forces has been applied, which would depict the overall intensity of the competition in the entire industry.
THREATS OF NEW ENTRANTS:
B&S has built a strong brand name in the entire market as well as the company has earned the loyalty, satisfaction and confidence of its customers over the period of time. This has increased the overall competitiveness of B&S, which is why there is little or low threat of new entrants towards the company.
In addition to this, a huge amount of share of the entire industry is significantly dominated by few companies in the industry.Moreover, in order to establish dominance in the entire industry, a significant investment is required. Thus, this acts as a barrier for the new entrants in the industry and therefore, subsequently decreases the overall threat of new entrants.
Furthermore, most of the gigantic companies have entered the entire industry of lawn mowers, these gigantic companies have already earned economies of scale as well as they also possess strong brand name, which increases their overall competency. In addition to this, they also have huge cash reserves by which they can spent extensively on marketing their products in order to grab the customers towards the company.
This poses the threat towards the company that the company might lose its competency and customer base if there is any inconsistency in the operations of the company. Thus, the overall threat of new entrants is assessed to be MODERATE.
THREAT OF SUBSTITUTES:
There are no substitutes available of the products traded in the entire industry. Thus, this decreases the overall threat of substitutes towards the company. In addition to this, the companies in the lawn mower industry trade similar kind of products which poses a threat to the company that the company might lose its customer base if the company failed in providing optimum quality products to the customers of the company as well as if the company offers its products at substantially high prices.
However, the overall threat of substitutes is assessed to be low.
BARGAINING POWER OF SUPPLIERS:
The players in the entire industry focus on the quality of the products which they sell. Therefore, in order to sell high quality products, the players in the entire industry require high quality raw materials in order to facilitate its customers with excellent quality products. In addition to this,there are only few suppliers in the entire industry that providehigh quality supplies.
Thus, this increases the dependency of the players of the industry towards the suppliers in the industry. Moreover, this gives room to the suppliers in the industry to charge high prices for their supplies. Thus, the overall bargaining power of the suppliers in the entire industry is assessed to be HIGH.
BARGAINING POWER OF CUSTOMERS:
There are number of players in the entire industry which manufactures and sells almost similar products to the customers in the industry. This provides the customers with a wide spread range of choices of the products to the customers in the entire industry.
In addition to this, the management of the company cannot charge higher prices from the customers in order to retain the customers.Thus, this increases the overall bargaining power of the customers in the entire industry. Therefore, the bargaining power of the customers in the entire lawn mowers industry is assessed to be high.
INTENSITY OF RIVALRY:
The players in the entire industry make their back breaking efforts in order to attract the customers towards the product of the company. They offer their products at comparatively low prices in order to attract the customers towards the company.
In addition to this, all the players in the industry make their back breaking efforts in order to provide the optimum quality products to the customers in order to attract the customers towards the product of the company. Thus, this increases the overall rivalry among the players in the industry………………
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