Bargaining Power of Buyers Customers cant bargain with URS because of:
• Standard prices
• Differentiated business
• High switching cost
Customer may bargain if has knowledgeable about-
• Product demand
• Actual market prices
• Supplier costs
• Buying in large quantity
Bargaining Power of Suppliers Suppliers for URS are powerful because
• Few of them
• URS dependent on them
• LOW Switching cost for supplier
• No substitute supply products-URS dependent on suppliers
URS should
• Apply backward integration
• Branch out and become their own suppliers to get better hold of production costs.
Substitute Products Threat of other substitute products
• Traditional wooden doors and roofs, bricks.
• Glass or steel roofs in the era when we face Global warming where people think they are trendy and green
• EPDM rubber flat roofing, Flat Roofing Liquid Systems- cold applied liquid waterproofing systems, etc
Rivalry among competitors URS has high intensity of rivalry
• High number of competitors
• Slow market growth as customers don’t change their roofs very often.
• Switching costs/lack of differentiation- URS has differentiated itself by innovating their services
• Customers still compare on the basis of service quality and prices.
URS would have to find ways to make productio ...