loyalty program. Buyers' power is high if buyers have many alternatives. It is low if they have few choices. Potential factors: Buyer concentration to firm concentration ratio Degree of dependency upon existing channels of distribution Bargaining leverage, particularly in industries with high fixed costs Buyer switching costs Buyer information availability Availability of existing substitute products Buyer price sensitivity Differential advantage (uniqueness) of industry products RFM (customer value) Analysis Bargaining power of suppliers The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm when there are few substitutes. If you are making biscuits and there is only one person who sells flour, you have no alternative but to buy it from them. Suppliers may refuse to work with the firm or charge excessively high prices for unique resources. Potential factors are: Supplier switching costs relative to firm switching costs Degree of differentiation of inputs Impact of inputs on cost and differentiation Presence of substitute inputs Strength of the distribution channel Supplier concentration to the firm concentration ratio Employee solidarity (e.g. labor unions) Supplier competition: the ability to forward vertically integrate and cut out the buyer. Competitive rivalry Competitive rivalry is a measure of the extent of competition among existing firms. Price cuts, increased advertising expenditures, or investing in service/product enhancements and innovation are all examples of competitive moves that might limit profitability and lead to competitive moves(Dhliwayo, Witness 2022). For most industries, the intensity of competitive rivalry is the biggest determinant of the competitiveness of the industry. Understanding industry rivals is vital to successfully marketing a product. Positioning depends on how the public perceives a product and distinguishes it from that of competitors. An organization must be aware of its competitors' marketing strategies and pricing and also be reactive to any changes made. Rivalry among competitors tends to be cutthroat and industry profitability is low while having the potential factors below: Potential factors: Sustainable competitive advantage through innovation Competition between online and offline organizations Level of advertising expense Powerful competitive strategy which could potentially be realized by adhering to Porter's work on low cost versus differentiation. Firm concentration ratio Factors, not forces Other factors below should also be considered as they can contribute in evaluating a firm's strategic position. These factors can commonly be mistaken