Market analysis Threats of new entrants/Barriers: - Economies of scale (p.2 [Bradley, Stephen P.; Harvard Business School 9-793-035]) - Ongoing price competition (Oligopol) (Five firms = 61%) (p.2) - Over capacity (p.2) - Site/Asset Specificity (Oliver E. Williamson) Bargaining power of suppliers: - None serious Bargaining power of buyers - Very high - Many suppliers - Low product differentiation - Large sized buyers (Total market = $12.2 billion [p.2]) 10 largest buyers have approximately 30% of the market (Exhibit 2) - Buyers have access to prices in all the market - Buyers are not end users and therefore have incentive to push prices more - relationships with more than one can supplier. - Low switching costs and product differentiation Threat of substitute products or services: - Very high substitution of products. All products are more or less the same. All patents have run out (p.8) - Not noticeable innovation going on. Competition Perfect competition combined with an over capacity in the late 1980s (p.2) have made the industry less attractive. In my p......

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