The bargaining power of the suppliers is low in the market and they cannot play monopoly in the market to emphasize companies to increase the prices because, ski boats market has become very competitive due to increased demand of the products, which has also opened opportunities to enter into the market and fill the gap to supplier parts, and materials. So, there is low power of suppliers in the market.
There is high-to-medium power of customers in the market, because on one side the ski boats industry has become very competitive, and on the other side the demands and expectations of the customers has also increased.The competitive industry does provide low power of customers in the market, and therefore the bargaining power of customers is not high.
There is high threat of substitute in the market because the customersâ€™ expectations and demands have been increasing and theoverall market demand has also increased. Therefore, there arehuge opportunities and gaps into the ski boats industry where present companies lack to meet with the demand and prices of the boats are also high which cannot be afforded by many individuals. Thus, it can be determined that there is higher threat of substitute in the market.
There is high threat of new entrant in the market because, the industry has become very competitive and demanding, and there are also gaps and opportunities that could be grasped by the new entrants. For Example, the ski boats companies could have contracts with beach contractors to provide all types of ski boats including any maintenance free at premises over a request. Thus, there is high threat of new entrant due to many opportunities available into the market.
There is high intensity of rivalry in the market because the market has become very competitive given that demand of the customers has increased in terms of features into the products, and many companies have also been working on many initiativesto improve the product offerings to customers. On the other hand, strong dealer and distributor relations are necessary on which the competition is being fueled up. Hence, there is high intensity of rivalry in the market that is being fueled up by high competition, increased customer demand and new entrants.
Company has good reputation in the market due to its productsâ€™ features such as sleek design, and higher power engines.It also has good experience in producing ski power boats and it is also financially stable. The company can use these strengths to address the internal weaknesses.It should have check and balance in the operations and divide the responsibilities of individuals by providing them training and holding them accountable for theiractions.
It could also use its relations in the market and acquire material and parts on discount or in bulk quantity to save costs and arrange high quality material and parts from the supplier on demand………..
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