Advantages: strong bargaining power for suppliers; Compared with competitors, it is not easily influenced by bigger buyers or sellers; Will form obstacles to potential entrants;
Disadvantages: technological progress makes the advantage of experience curve lose, which leads competitors to imitate; It is easy to ignore the needs of different customers.
Differentiation strategy:
Advantages: the brand has loyalty, which improves the dependence of buyers and can reduce the threat of substitutes;
Disadvantages: threatened by imitation after entering maturity.
Focus strategy:
Advantages: establish customer loyalty, and be able to respond to customer needs, and be able to play their own abilities in their own concentrated market;
Disadvantages: technical changes and changes in customer demand pose threats, resulting in customer loss and high cost.