... processing cost, the overall profitability of the industry went down. * High Investment: Requirement of high investment is an essential component in entering the industry as well as to convert factories to produce different type of tires as radials. * Product Differentiation: Tire as a product is hard to differentiate. Still there are some variations under different brand names. And companies have to spend in huge number to make their products identifiable to the customers. Moreover they not only want to keep their existing customers but also want to acquire their competitors' customers. * Exit Barriers: As huge amount of investment is required to set up a manufacturing plant and to shift to new business, it is extremely difficult to exit from the tire industry. Companies like Uniroyal, Goodrich had to merge due to high exit barriers. Buyer's Power It refers to the bargaining power of the customer. According to Porter, if the bargaining power ...

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