Analysis on the Development Strategy of Hotel Group with "Five Competition Models"

The competitiveness among existing companies is the strongest among the five forces. In order to win market position and market share, they usually do whatever it takes. In some industries, the core of competition is price; In some industries, price competition is very weak, and the core of competition lies in the characteristics of products or services, new product innovation, quality and durability, warranty, after-sales service and brand image.

2. New entrants

New entrants to a market often bring new production capacity and resources, hoping to occupy a place in the market. For a specific market, the competitive threat faced by new entrants comes from the reaction of entering market barriers and existing manufacturers.

Step 3 substitute goods

Competitors in one industry often face competition because manufacturers in another industry can produce good substitutes. Generally speaking, the lower the price of substitutes, the higher the quality and performance of substitutes, the lower the switching cost of buyers, and the greater the competitive pressure brought by substitutes.

4. Suppliers

If suppliers have sufficient bargaining power and have great advantages in pricing, quality and performance of products supplied or reliability of delivery, then suppliers will become a powerful competitive force.

5. buyers

If the buyer can have a certain bargaining advantage in price, quality, service or other sales conditions, then the buyer will become a powerful competitive force. Generally speaking, bulk purchasing gives buyers considerable advantages, so that they can get price discounts and other favorable conditions.