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3. Potential entrants / Barriers to entry: Medium-High

Bargaining Power of customers: Low

Bargaining Power of Suppliers: Medium-Low

4. Power of Substitutes: High

Potential Competitors/ Rivalry: High

Customers usually make small purchases.

A large number of customers

Dipepsa´s main customers are individuals.

1. Dipepsa´s purchases huge quantities of products from its supplier

2. Low switching costs from one supplier to another.

3. Products have a lot of substitutes.

4. Almost all the products are not critical for Dipepsa´s

1. Economies of scale. 2. High capital requirements. 3. Customers mainly look for products with low prices and standard quality. 4. Low switching costs among companies for customers. V. Requires a precise distribution system

Prices and quality of substitute products are very competitive.

Performance of substitute products are similar.

Consumer switching costs are low.

1. Dipepsa´s represents the 10% share of the market in Coatzacoalcos

2. Competitors have similar sizes or bigger.

3. Industry growth is slow.

4. Exit barriers are high.

5. There is a high production capacity