of buyer power (ôPorterÆs Five Forcesö). According to Porter, buyers are powerful if they are concentrated, can purchase a significant proportion of output, or are in a position to buy the producing firm or its rival (ôPorterÆs Five Forcesö). Supplier power is the opposite dimension of buyer power. When there is a ôcredible forward integration threat by suppliers,ö a concentration of suppliers, significant cost to switch suppliers, or powerful customers, supplier power is strong (ôPorterÆs Five Forcesö).
Barriers to entry are characteristics of an industry that protect the high profit level of firms in the market and deter additional rivals from entering the market (ôPorterÆs Five Forcesö). Barriers to entry tend to be ôunique industry characteristics that define the industryö (ôPorterÆs Five Forcesö). Such barriers reduce the rate that new firms enter the industry, which maintains a level of profits for those firms already in the industry (ôPorterÆs Five F
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