• Analyze how easily your products can be substituted with others.
• It will depend on factors such as its relative price, accessibility, and quality.
• All alternatives should be considered, not just similar products.
• As an example, airlines compete not just with other airlines, but with train and bus operators as well.

Analyze your buyers' strengths.

• Do buyers have the upper hand in this market?
• Can buyers easily switch brands?
• Could some of your customers be in such a strong position to make you vulnerable?
• What impact will it have on your company if you're dealing with businesses with low-profit margins?

• Know how strong your suppliers are.
• Is there a supplier you are dependent upon?
• Is there anything you can do to reduce this?
• What are the chances that the supplier would be able to sell directly to your customers if it did not depend on your business?
• Is there an alternative product or method you could use to reduce your vulnerability?

• In industry analysis, it is important to understand who your competitors are and how you compare them.
• From the outside looking in, it may seem that everyone is a competitor.
• However, take a closer look and you will find that there are both direct and indirect competitors depending on the industry.
• For example, the direct competitor for Netflix is Amazon Prime, Disney+, Hulu, etc but its indirect competition is in games such as PUBG, Fortnite, etc.