Toy manufacturing industry – competitive overview

Various factors influence the cost and prices operating in an industry thus affecting its attractiveness. Porter (1985) identified the buyers, suppliers, new entrants, substitutes and competitors as the five forces that determine the competitiveness in an industry hence its attractiveness. Reinforcing his earlier model, Porter (2008), argues that a firm’s competitive strategy should aim to modify the five forces to its favor for it to succeed in a dynamic environment. The subsequent discussion highlights the effect of the five forces on the attractiveness of the toy manufacturing industry.

competivive analysis

Fig 1: analysis of the competitive environment in the toy manufacturing industry.

As highlighted in the figure above, the threat of new entrants in the toy industry is considerable,  the threat of substitutes is considerable, buyers’ bargaining power is moderate, suppliers’ bargaining power is low, and competitive rivalry is high. You can get the details for aspects leading to these results by placing your custom order below. Alternatively, go to part four here.

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