MKC01

Rochelle U. Paras April 1, 2019

2AAC Prof. Manahan
Industry Analysis: RDCU Furniture (Manufacturing)

THREAT OF NEW ENTRY

 Threat for new entry is possible
 It is not hard to start a furniture business in the Philippines
since the capital needed would only be minimal
 Skills and materials are the main resources of the business
 Investment in technologies is not applicable
 Large furniture companies can make it difficult for smaller
furniture businesses to attract customers when they enter a
market
 The use of brand recognition and reputation to attract
customers, making it difficult for new furniture stores to
attract a client
 One of the barriers to entry is dealing arrangements by
existing companies

BUYER POWER
 The bargaining
power of buyers
SUPPLIER POWER is high
COMPETITIVE  The furniture
 Power of suppliers
are relatively low RIVALRY demand by public
in the market
since there is a Rivalry among the industry continues to rise;
wide range of is quite high, since the this condition is
providers for raw RDCU is a small-scale accompanied by
materials. company competing against supplying
 Also, not only companies like
products that are
wood can be used Functionsmith and Philux
which also provide the
very competitive,
in production a same services but have both in quality
company can opt more experience in the and price
to substitute it industry.  Producers have to
with other compete to gain
materials market share
with other lower
price products
 The bargaining
power of buyers
is high

THREAT OF SUBSTITUTION
 The threat of substitute in this industry is weak and there are no
threat from the substitute part
 Threat of Substitute in Furniture Industry is relatively weak,
because there are no substitute for furniture product that exist in
the market. Until now, people use furniture from wood, metal,
plastic, and other materials in everyday activities
 The threat of substitute in this industry is weak and there are no
threat from the substitute part