The reasons for the intensification of competition within the industry may be as follows:
Industry customers may be consumers or users of industry products, or they may be commodity buyers. The customer's bargaining power is reflected in whether the seller can lower the price, improve product quality or provide better service.
It is reflected in whether suppliers can effectively induce buyers to accept higher prices, earlier payment times or more reliable payment methods.
Potential competitors refer to those companies that may enter the industry to participate in competition. They will bring new production capacity and share existing resources and market shares. As a result, the industry's production costs will rise , market competition intensifies, product prices fall, and industry profits decrease.
It refers to the competitive pressure of products that have the same function or can meet the same needs and thus can be substituted for each other.