Five Forces Analysis

five forces analysis The bargaining power of buyers is increasing. Vietnamese consumers are more and more aware of

the different options they have in buying lighting products. This means that they have more choice in

different products, which increases their influence over a company. For PEV this means that they

have to take into account that buyers are more informed, and will be aware of the different brands

of lamps they can buy. An important point in this was mentioned by the retailers: they think PEV

should educate the buyers. According to them, Philips is a better quality product than the

competition, but buyers need to know this: and since buyers are getting better informed about

different products, this education of buyers is an important point.

A second important point in the bargaining power of buyers is the target group of the business

A second important point in the bargaining power of buyers is the target group of the business. If a

company relies on one or two large customer groups for its sales, the bargaining power of buyers is

higher (Kotler, 2003). At the moment this is the case for PEV: because of the high quality product

with higher price, Philips aims at target group with higher purchasing power.

Bargaining power of suppliers

This forms no threat for PEV: the supply of the subcomponents needed for the fabricationof the

products is all coming from Philips factories in other countries (for