5 Competitive Force Bs.docx

Competitive forces Bargaining power of Buyers Buyers have low demand for sellers products Focus Point is facing big competitive pressures stemming from buyer bargaining power because nowadays buyer bargaining power is high. Buyers have high strength of demand on seller’s product and buyers can consider buying product from same eyes wear industry as Focus Point. Example, VISTA Eye Specialist is selling a lot of kind of spectacles, therefore buyers can consider which company product or service is better.

Degree to which industry goods are not much different On the other hand, Buyers can decide to purchases another competitor product or substitutes because product and service have not much differenced. So Focus Point focuses to maintain their product and service quality as well as they can. This is a domain reason why Focus point d is the only public listed optical chain store in Malaysia.

In my opinion, consumers have high power to affect pricing and quality. Consumers have power to switch from one business's products or services to another. Thus, it is importance forces due to any organization.

Bargaining power of supplier Big size of suppliers relative to size of industry members Big size of supplier’s power can exert on businesses by raising prices and reducing availability of their products. Other companies have high barrier to entry for this industry because Focus Point is the only one who public listed optical chain store in Malaysia. Focus point also invest resource to build many outlet in areas. Not only that, Focus point already has a strong brand to create high customer confidence and a strong market reputation.

High switching costs among supplier Furthermore, Focus point products have high switching costs because quality of focus point product is better than a lot of substitute product. Example, Focus point eye laser surgery has more good quality than other eyes laser surgery such as optimax and Viesta. Eye laser surgery is an expensive and dangerous surgery therefore more customers decide to take focus point eye laser surgery service can reduce the risk of accident.

In my opinion, I think that bargaining power of supplier also very important because this force analyzes how much power a business's supplier has and how much control it has over the potential to raise its price.