1) New Entrants: The threat of new entrants is quite high since there would be many local and international brands who will want to enter into the electronics markets. The investment required to enter locally is not that high but internationally that would require a huge investment.
2) Bargaining Power of Suppliers: The bargaining power of suppliers is high. Elecdyne is dependent on the suppliers for all the raw materials and also the technology. The switching costs are high which also adds to the bargaining power of suppliers.
3) Bargaining Power of Buyers: The bargaining power of buyers is high because there are a lot of options available to them and the consumers are not loyal. Different markets have a different kind of consumer behavior. Internationally in some markets the consumers are highly price sensitive. In countries like USA and Germany consumer are more brands conscious. Institutional buyers have a large bargaining power.
4) Threat of Substitutes: The threat of substitutes is also quite high because in the electronics market the products keep on changing and evolving quickly. Innovation plays a key role in getting substitutes for the products.
5) Rivalry: The rivalry amongst the competitors of the industry is quite high. The major players of the market are exactly the same size of each other and price wars are common features of the market.